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When you dramatically expand the money supply you make the rich richer. It doesn't matter how the money is distributed, it tends to inflate asset prices, and t
by nostromo 6y ago
When you dramatically expand the money supply you make the rich richer. It doesn't matter how the money is distributed, it tends to inflate asset prices, and the people who own the most assets (the rich) reap the rewards in the end.
If you wanted to stop that, you'd have to actually pay for your spending, perhaps by implement some sort of wealth tax or dramatically increasing income taxes. Of course, nobody wants to increase taxes, so we just keep printing money to try and fix every problem.
- flurben 6y agoWhat you just said is factually incorrect. Expanding the monetary supply does not "make the rich richer."
- sebmellen 6y agoThe number of people who are homeless, in medical debt, and unable to work or make any money due to limited skillsets and COVID is astounding. These people need some type of immediate help, and if they don't receive it, the effects will be far more detrimental than the effects of fiscal stimulus. And I think you're confusing monetary stimulus with fiscal stimulus. > It doesn't matter how the money is distributed, it tends to inflate asset prices For the US, that's not true. The US Dollar is the world's reserve currency, and the Fed isn't worried about inflation, but a lack of money supply. The pandemic has led to a huge demand for safe assets, including Treasury bonds, which has led to incredibly low interest rates on Treasury bonds, and a stronger dollar. See, for example, this article: https://www.washingtonpost.com/business/2020/04/05/what-2-trillion-coronavirus-bailout-is-really-going-cost/ https://www.washingtonpost.com/business/2020/04/05/what-2-tr....