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But there's nothing complex here. You are wrong on a very simple econ101 type level. The covid check was economic stimulus. Like what Bush W did for example.
by soylentnewsorg 5y ago
But there's nothing complex here. You are wrong on a very simple econ101 type level.
The covid check was economic stimulus. Like what Bush W did for example. It literally stimulates the economy every time, because for every one of you and me who don't need it and save it, by investing it in companies via mutual funds, there are people who immediately spend it on things like food, also giving money to companies.
Now here's what happens when you don't give money to companies: they have to take loans with interest. That interest is later paid by customers via increased prices, because the supply side cost is now higher.
Companies also go out of business w/o money. You now have less supply, for inelastic demand (because it's food). This increases prices.
So, econ101: prices went up. Because supply chains were affected by the pandemic, and when supply cost goes up, you pay more. If you didn't have the stimulus checks, they would have gone up more. Much more.
Paying attention in econ101 helps know this. What you missed by not paying attention, is they were referring to printing money and Not giving it to people. Like the government having to fund itself, or the king funding himself. A stimulus check is trickle up economics, and Lowers prices. So econ101 taught us the opposite of your takeaway from that class. That class was of course called microeconomics, not econ101.
- silisili 5y agoI promised myself I wouldn't reply further as I really don't want to debate anything. But this comment is so nonsensical I have to let you know that. > A stimulus check is trickle up economics, and Lowers prices. How, in your mind, does this sentence make any sense? Don't worry you can really lay into me, I won't reply.
- imtringued 5y agoCar companies shut down production because they predicted low demand which caused car prices to spike. If the president told the car companies that he is going to give consumers enough money to buy cars car manufacturers wouldn't have slowed down production but instead doubled down on producing more, prices would be low because there is enough supply.
- hammock 5y agoWe did this experiment already with used cars, it was called cash for clunkers, and it raised the price of used cars. If Biden forgives student loans is that going to lower the price of tuition?
- soylentnewsorg 5y ago> and it raised the price of used cars since the point of the program was to stimulate production of New cars, which it did, creating an increase in GDP and jobs, the experiment was a success. If Biden forgives student loans it will not lower the price of tuition. Since the point of student loan forgiveness is to help people get on their feet, and buy houses and cars, it not lowering the price of tuition would also mean a success. I'm guessing you have a house mortgage. If I pay that off for you, will it lower the price of your house? I guess there's no point in doing it then. Because you wouldn't take that monthly mortgage payment and instead buy more stuff or invest in stocks, boosting the economy. You would clearly spend it on sponsoring a super-spreader own-the-libs rally.
- hammock 5y agoSo it's the intention or internal motivation of the money that makes the difference? When I look at George Washington I see the same expression in every bill, but that could be me.
- soylentnewsorg 5y agoIf you post a comment on hn, will it change the image on the dollar bill? Will it stop priests from having sex with boys? You made up a fake goal for Biden, and for a car program - not sure why. What is the exact intention of your post? Posting random offtopic thoughts like I just did? We already know your internal motivation.
- soylentnewsorg 5y agoWell, since I explained it, my recommendation is in addition to re-taking econ101, also retaking English - reading specifically. When you give money to people, they spend it by giving it to companies by purchasing products or buying stock. When you don't, companies go out of business and your supply is reduced. Reduced supply is higher prices. This applies during a pandemic, when the companies doing the supply are going out of business, and when the demand side is out of a job and out of money to spend with those companies. But, since my first explanation, which is exactly the same as what I retyped here, was not read by you beyond an out of context sentence, I have a very good idea about how your brain works, and why it still makes no sense to you. Now talk a bit about why the vaccine is a plot to take away our freedom. I'm here for the entertainment.