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Isn't a negative interest rate basically UBI?
by fartcannon 4y ago
Isn't a negative interest rate basically UBI?
- marcosdumay 4y agoYes, as long as the B stands for Big Business.
- Dylan16807 4y agoHow so? I don't understand this connection at all.
- OJFord 4y agoErm, because one might hypothetically get paid a small amount for taking a short term loan, and everyone would do that you mean?
- eru 4y agoDepends on the inflation rate. If prices are falling fast enough, a negative nominal interest rate is still a positive real interest rate.
- imtringued 4y agoIf cash is abolished or has to pay a negative interest rate then no, you will quickly notice that the negative interest rate is closer to a storage fee and you actually have to store that value somehow in the real economy. The purpose of credit is to bridge supply and demand across time and that actually takes some effort if there are no safe havens like cash or real estate.
- sschueller 4y agoNo, we have a negative interest rate in Switzerland and for the average person it basically means over a certain amount of cash in the bank they will take some. So kind of like a bank account fee.