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"Trickle down stimulus" is not an economic theory. It's a criticism of supply side economics, equivalent to calling Keynesian economics "money printer go brrr"

"Trickle down stimulus" is not an economic theory. It's a criticism of supply side economics, equivalent to calling Keynesian economics "money printer go brrr" stimulus. Arguably, corporate bailouts like we're seeing now ARE a Keynesian stimulus because they're meant to keep businesses afloat while consumer demand has fallen off a cliff so that they can continue to do business (i.e. maintain demand for business inputs). Few if any of these corporations are taking the bailout money and investing it in capital infrastructure. The bigger issue is that the "current path" is to use both Keynesian stimulus and supply-side stimulus with no regard for the deficit. At some point, unless the US has another WWII-like economic expansion, all the debt we've created to fuel these policies will need to be paid back, either explicitly or implicitly through inflation.

kyuudou 7y ago
> all the debt we've created to fuel these policies will need to be paid back, either explicitly or implicitly through inflation. And if you've been watching prices for staples or the big mac index, prices have already reflected inflation from the last decade's worth of quantitative easing. I left a cushy fed job with a full secret clearance because of the TARP bailout back in 2008 and they are about to do the same thing in spades again, ugh. They should've just let Goldbag Sacks and the rest of their filthy lot fail, let the economy feel the recession pain like it's supposed to and let a reset happen. I don't really want to see the other side of this one. For sure I'm not saving too many USD in 0% interest accounts...
- deleted 7y ago
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