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And yet people have argued for decades that stimulus money going to corporations is multiplied many times over because those corporations supposedly create jobs
by titzer 4y ago
And yet people have argued for decades that stimulus money going to corporations is multiplied many times over because those corporations supposedly create jobs which supposedly creates even more economic activity. Why is it not the case that stimulus money to corporations creates multiplicative inflationary effects in the same way?
- sokoloff 4y agoCompanies grow by producing supply of products/services for sale. They also turn around and employ staff. The first sentence represents the creation of supply; the second the creation of demand [via the payments of wages]. That's much more balanced than if you just give money to consumers, increasing demand without a corresponding increase in supply.
- jjoonathan 4y agoYou conveniently left out the part where they are entitled to pocket it if they can, sending it straight into rich peoples' brokerage accounts, where it was intended to go all along. Yes, the brokerage accounts of rich people have less velocity than the bank accounts of poor people. This makes it more scandalous, not less. People who didn't need the money took ten times as much, because they could, and now they are pointing accusing fingers at the little people. Again.