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Obviously* it's not printing money literally. But it's increasing the money supply. When governments deficit spend, they deposit money in private sector banks,
by scarmig 4y ago
Obviously* it's not printing money literally. But it's increasing the money supply. When governments deficit spend, they deposit money in private sector banks, increasing their balance sheet. The net result of this is more dollars in and flowing through the economy.
Which is... printing money, pretty much. The idea that it's some kind of moral failing or inherently irresponsible is silly, but the description isn't some crazy conspiracy theory.
* I'm sure some people have the idea that Jerome Powell is walking up to a printing press, turning a crank, and literally printing money. But I'm also pretty sure that no one here is under that misconception.
- yata69420 4y ago> But I'm also pretty sure that no one here is under that misconception. I'm a little less sure every time I read one of these threads.
- imtringued 4y agoYou call it printing but it happened in response to the private sector desiring to increase its net savings which can only happen if another party goes into further debt. By this logic, saving money is printing money because the money in your bank account is taken out of circulation and stagnates on your bank account, that stagnant money is added on top of the usual supply needed to keep the economy running. This is quite literally a conspiracy theory. Don't you see how ridiculous this framing is?