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I don’t understand the theory for why injecting money into the economy is supposed to work. They’ve forcibly shut it down. The point of injecting money is to st
by empath75 7y ago
I don’t understand the theory for why injecting money into the economy is supposed to work. They’ve forcibly shut it down. The point of injecting money is to stimulate the production of goods and services. If you can’t make goods and services all it’s going to do is generate a lot of inflation.
- fg6hr 7y agoHere's another observation from an armchair economist. Money flow upwards by forces of debt and contracts. If we short circuit the very top with the very bottom, money will start flowing inside this loop. If we don't form this loop, the powerful vacuum cleaner at the top will break this mechanism. In other words, the amount of money in the system doesn't matter much. What matters is that money form a steady flow pattern.
- bo1024 7y agoThis sounds reasonable. Right now people need money mostly for rent and mortgages. So the solution is to pay people money so they can afford rent, I.e. loop money right back up to the banks and capital holders.