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Overprinting money causes massive economic distortion. For instance, the rich who get the money first are buying up all the houses, turning the US into a nation
by javert 5y ago
Overprinting money causes massive economic distortion. For instance, the rich who get the money first are buying up all the houses, turning the US into a nation of renters.
Another example--the federal government enables "easy money" as higher education loans, which has enabled universities to massively overcharge for mostly low quality education.
- Ericson2314 5y agoYes inequality is inefficient. The monitarists' conception of inflation is a temporary distortion where all the money stock and flows pick up. What you are describing is a spacial distortion where certain people / goods get unfair treatment. The latter is indeed quite dubious, but it's not the same as the former! Conventional monetary policy is lame and fairly ineffective, but I have seen claims that raising rates is better at destimulating than lowering is at stimulating. What a tough nuance to convey!
- topkai22 5y ago> … turning the US into a nation of renters. The data doesn’t seem to support this, at least not yet. The owner occupancy of units has been increasing since 2016 and increased after 2020. The increase in housing prices has been extraordinary, but seems in large part due to people who actually intend to live in that housing. See: https://fred.stlouisfed.org/series/EOWNOCCUSQ176N https://fred.stlouisfed.org/series/EOWNOCCUSQ176N https://fred.stlouisfed.org/series/RHORUSQ156N https://fred.stlouisfed.org/series/RHORUSQ156N
- Ericson2314 5y agoI wish it were true, because single family house homeownership is an unsustainable 1950s meme. Better we take the red pill asap and get on with appartments.