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Nostromo specifically said, " not very stimulative. More money would be returned to high income individuals who are more likely to hold onto the extra cash." W
by earl 15y ago
Nostromo specifically said, " not very stimulative. More money would be returned to high income individuals who are more likely to hold onto the extra cash." Which is exactly correct -- poor people spend basically every penny they get because they're forced to, while wealthier people will either pay down debt or save. Thus for a fixed stimulus, your best bang for the buck is income supports for unemployed / poor because they will immediately spend it. Note also a big portion of our current economic climate is a lack of demand.
Try reading a couple months of Paul Krugman -- he explains this particularly well.
- gaius 15y agoKrugman is a buffoon, his solution to every problem is " print more money".