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The one sentence of this article I zoom in on is that this increases the money supply over time. Well...yes it does, but that's not bad. The question is how muc
by madrox 4y ago
The one sentence of this article I zoom in on is that this increases the money supply over time. Well...yes it does, but that's not bad. The question is how much, who is getting that extra supply, and how is that changing things?
I have no problem with people under lots of student debt getting a 10k shot in the arm. We've spent more on projects that feel less good than this. However, it won't affect consumer behavior any time soon. Unless people's debts are ended, their spending habits won't change and this won't stimulate the economy. However, it does sound like democrats followed through on something, so it's a great political gimmick during election season. I say this as someone who tends to vote democrat.
- danaris 4y agoThe program does more than just knock 10k off their debts. It changes how interest and minimum repayments work, in a way that will, for many people, drastically reduce their monthly payments. That's definitely enough to affect consumer behavior.
- madrox 4y agoThat's a detail I didn't know about. I guess it will remain to be seen. I still assert it won't stimulate the economy unless debts are completely repaid, but I am open to being wrong.
- walkhour 4y agoThe increase in money supply may not be bad but it's obviously bad now, when inflation is so high. So even if you're in favour of these policies you must think the timing is bad. The fact that's it's happening despite inflation is further proof that this is a political gimmick.