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Wait, it's a double pay. Here are saner options for "gov pays": 1. Gov pays employees for missed days, biz closes for unpaid vacations. 2. Gov pays biz for mi

Wait, it's a double pay. Here are saner options for "gov pays": 1. Gov pays employees for missed days, biz closes for unpaid vacations. 2. Gov pays biz for missed revenue, biz extends paid vacations. Also don't forget that gov does not even earn/save money, so "gov pays" is an instant failure in a rational discussion.

londons_explore 7y ago
"Gov prints money to pay wages" Isn't that's what's normally written in history textbooks shortly before "hyperinflation, economic collapse, failed state"
- 0xfaded 7y ago
  The US is in the enviable position of being able to print money, and it should. Taxes are not about revenue collection, they're about controlling inflation. Print lots of money, distribute it evenly to everyone, and make a one time levy on all bank deposits to remove the same amount from the economy. You can call it stock buyback buybacks if you like ;) There may still be some initial inflation, as this action just released a lot of purchasing power to the masses. But people are tightening the purse, and long term things should level out.
- simoom22 7y ago
  Textbooks get the causation backwards on that, the order of events is actually "economic collapse, hyperinflation, failed state"
  - dsfyu404ed 7y ago
    You could also take the view that trying to mitigate economic collapse by printing obscene amounts of money is something that failed states do because they have no other options. The correlation between hyper-inflation and regime change is very strong but the sample size is limited so we can't infer all that much bout the order of causation.
- imtringued 7y ago
  Why would the government have to print money? It can just get a -0.1% loan and get most of the money back after the economy has recovered.
- fgonzag 7y ago
  You don't need to print money. You could have businesses pay salaries and refund back those salaries as tax credits. You can offer short term loans to those small businesses who have cash flow issues. You can forgive all taxes during the lockdown (so the rent and wages you just paid does not generate taxes) There are many ways a government can help during an economic crisis.

londons_explore 7y ago

"Gov prints money to pay wages" Isn't that's what's normally written in history textbooks shortly before "hyperinflation, economic collapse, failed state"

0xfaded 7y ago
The US is in the enviable position of being able to print money, and it should. Taxes are not about revenue collection, they're about controlling inflation. Print lots of money, distribute it evenly to everyone, and make a one time levy on all bank deposits to remove the same amount from the economy. You can call it stock buyback buybacks if you like ;) There may still be some initial inflation, as this action just released a lot of purchasing power to the masses. But people are tightening the purse, and long term things should level out.
simoom22 7y ago
Textbooks get the causation backwards on that, the order of events is actually "economic collapse, hyperinflation, failed state"
- dsfyu404ed 7y ago
  You could also take the view that trying to mitigate economic collapse by printing obscene amounts of money is something that failed states do because they have no other options. The correlation between hyper-inflation and regime change is very strong but the sample size is limited so we can't infer all that much bout the order of causation.
imtringued 7y ago
Why would the government have to print money? It can just get a -0.1% loan and get most of the money back after the economy has recovered.
fgonzag 7y ago
You don't need to print money. You could have businesses pay salaries and refund back those salaries as tax credits. You can offer short term loans to those small businesses who have cash flow issues. You can forgive all taxes during the lockdown (so the rent and wages you just paid does not generate taxes) There are many ways a government can help during an economic crisis.