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You do realize that nobody keeps that cash on hand, right? It’s in banks where it gets lent out, thus participating and contributing to the economy. "Hoarding"
by nickpp 6y ago
You do realize that nobody keeps that cash on hand, right? It’s in banks where it gets lent out, thus participating and contributing to the economy.
"Hoarding" is nonsense.
- throwaway2048 6y agoIt plowed into low productivity assets like real estate, in an endless cycle of increasing real estate costs. The effect is almost identical.
- Spooky23 6y agoHow are the nearly $2 trillion of bank reserves at the Fed contributing? That’s a significant portion of the total money supply. Most of the corporate cash isn’t in equity funds, it in US Treasury debt. Apple holds >$50B of treasury securities, for example. The low inflation monetary policy has some benefits, but combined with our ass-backwards tax system also makes for strong disincentive to do anything with excess cash.
- nickpp 6y agoMoney in the government coffers is spent and used by the government. Again, a good thing (as far as government spending can be called a good thing, of course).