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> B. A balancing mechanic -- Some more universally-accessable way to inject income at the base of the economy. Something like, for example, giving $1000 to eve

> B. A balancing mechanic -- Some more universally-accessable way to inject income at the base of the economy. Something like, for example, giving $1000 to every adult?

anchpop 6y ago
This is risky, because if the fed accidentally injects too much money by buying back too many bonds, they can always un-inject it by selling the bonds back (and banks are compelled to buy). This lets the fed be more aggressive because it knows that if it goes too far and starts seeing more inflation than it intended, it can always walk back its decision. But there's no realistic way to do that after having given $1000 to every adult.
- tylerhou 6y ago
  Taxes?
  - notriddle 6y ago
    The Fed can't make taxes. Congress makes taxes, but Congress is subject to popular approval, and the population don't like tax hikes.
    - tylerhou 6y ago
      The Fed also can't give $1000 to everyone.
  - jackcosgrove 6y ago
    Changes in tax rates require Congress to act. Too slow moving to be a money supply control.
CyberDildonics 6y ago
Possibly, though printing off $40,000 for every tax payer then cutting them a few thousand is probably not going to be the best approach. https://fred.stlouisfed.org/series/M1REAL https://fred.stlouisfed.org/series/M1REAL
- Aunche 6y ago
  Where did you get $40,000 from?
  - CyberDildonics 6y ago
    5.3 Trillion in stimulus divided by 150 million people who pay income tax in the US is actually $35.3k USD. The final stimulus toll may be higher and taxes come from a variety of places so that may be high for the final burden per person, but I think it will be close by the time all is said and done.
    - Aunche 6y ago
      The stimulus checks, unemployment benefits, at least 85% of PPP money, and education funding all solely benefit regular taxpayers. Large corporations got the equivalent to subsidized loans. Let's say that random pork projects benefit both groups equally. I don't see how regular taxpayers are losing out here.

> B. A balancing mechanic -- Some more universally-accessable way to inject income at the base of the economy. Something like, for example, giving $1000 to every adult?

anchpop 6y ago

This is risky, because if the fed accidentally injects too much money by buying back too many bonds, they can always un-inject it by selling the bonds back (and banks are compelled to buy). This lets the fed be more aggressive because it knows that if it goes too far and starts seeing more inflation than it intended, it can always walk back its decision. But there's no realistic way to do that after having given $1000 to every adult.

tylerhou 6y ago
Taxes?
- notriddle 6y ago
  The Fed can't make taxes. Congress makes taxes, but Congress is subject to popular approval, and the population don't like tax hikes.
  - tylerhou 6y ago
    The Fed also can't give $1000 to everyone.
- jackcosgrove 6y ago
  Changes in tax rates require Congress to act. Too slow moving to be a money supply control.

CyberDildonics 6y ago

Possibly, though printing off $40,000 for every tax payer then cutting them a few thousand is probably not going to be the best approach. https://fred.stlouisfed.org/series/M1REAL https://fred.stlouisfed.org/series/M1REAL

Aunche 6y ago
Where did you get $40,000 from?
- CyberDildonics 6y ago
  5.3 Trillion in stimulus divided by 150 million people who pay income tax in the US is actually $35.3k USD. The final stimulus toll may be higher and taxes come from a variety of places so that may be high for the final burden per person, but I think it will be close by the time all is said and done.
  - Aunche 6y ago
    The stimulus checks, unemployment benefits, at least 85% of PPP money, and education funding all solely benefit regular taxpayers. Large corporations got the equivalent to subsidized loans. Let's say that random pork projects benefit both groups equally. I don't see how regular taxpayers are losing out here.