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The comfortably rich are getting richer because they are closer to the money spigot. They get to spend the money right now, before the inevitable asset inflati
by rland 6y ago
The comfortably rich are getting richer because they are closer to the money spigot.
They get to spend the money right now, before the inevitable asset inflation that occurs when 2T gets printed.
By the time you -- YOU, the regular person -- see the money that was pumped in 10 months ago, in the form of your salary, it is already too late. Your salary does not give you any actual increase in any concrete thing, because inflation has already occurred.
If, somehow, that money that was printed goes into actually useful things, like RnD, infrastructure, or education, then perhaps your salary could buy more things because the economy would be more productive. But it can't because it's not... instead, dog walking apps are worth a billion dollars.
- imtringued 6y agoI wish governments had put the damn money into useful things. It's absolutely shameful that this hasn't resulted in better internet connectivity in USA for example.
- mrep 6y agoWell, in the case of the US government, the FED printed about 3 trillion dollars, 2/3 of which went to buying our own governments debt (US treasury securities), and the other 1/3 was basically all mortgage backed securities and the people selling those to the FED probably turned around and bought US treasuries. The federal governments deficit last year was about 4 trillion so the FED basically directly and indirectly financed 3/4 of our own federal governments deficit spending most of which went towards the CARES act which mainly gave cash to citizens directly through stimulus checks and increased unemployment payouts and indirectly by paying employee wages to keep people employed. It also helped fund state budgets, hospitals and operation warp speed which has speed up the moderna vaccine. Overall, I think the those were some pretty damn good investments for a pandemic induced recession.