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I think I can follow that logic. But what do we do about the inflation that this brings? If all of a sudden there is a huge amount of extra cash in teh system
by chollida1 4y ago
I think I can follow that logic. But what do we do about the inflation that this brings?
If all of a sudden there is a huge amount of extra cash in teh system, then prices go up alot. Lets say everything goes up 20%.
Now the poor who had debt no longer have debt but the price of life has gone way up for them.
The rich just pocket the money and the inflation doesn't affect their day to day life very much. Infact they are better off as assets have now inflated due to this new money.
Thinking about this more, this like the poorer you are the worse off you'd now be in this situation.
Unless the solution is to close your eyes and pretend like inflation would never happen, which the last year has shown us is not a reasonable belief to hold.
- euroderf 4y agoI guess what is proposed is a one-off inflationary expansion... much like the Covid stimulus bills (it all created how many trillions of dollars?). But the net result was (AFAIK) a significant drop in indebtedness and poverty. But then again, the inflation was picked up by companies as an excuse to profiteer, and initiate a spiral, which is why we find the Fed today kicking the economy in the groin.