3 ms·

It only addresses the demand side and not the supply side. Putting more money into system doesn't add any additional goods. You only get the benefit if you ar

It only addresses the demand side and not the supply side. Putting more money into system doesn't add any additional goods. You only get the benefit if you are among the first to get the money because you will be able to bid up the price putting the person without the extra money at a price disadvantage --or-- you get the product(s) first leaving others to go without. The fear is in extreme cases, this can lead to inflation and/or empty shelves. Maybe with something like donuts, the baker has plenty of dough and will hire more and create more to meet the demand. Or maybe you have no control over your raw materials (like the price of OIL or some complex refining process) and can't make any more gasoline no matter how much money your customers have.

mcphage 3y ago
> Putting more money into system doesn't add any additional goods. I don't think goods are in short supply. > you get the product(s) first leaving others to go without Luckily the person able to solve that problem—the producer of those goods—just got a whole bunch of money by selling the goods they had produced so far.
- micah94 3y ago
  I'll concede I may have conflated the idea of money printing with reallocating existing funds. It's not clear where this money is going to come from. But I get suspicious whenever the govt just wants to hand out money. There are so many other programs handing out money. Why is this one going to be better?
  - mcphage 3y ago
    I dunno. But people really like their credit card bonuses, even those things come from credit card interchange fees, which in turn come from raising the prices on goods.
MattPalmer1086 3y ago
Is more money being put into the system, or is it being allocated differently? I can understand that printing more money leads to inflation. I'm having a harder time understanding why taking money from one place and putting it in another does the same thing.

mcphage 3y ago

> Putting more money into system doesn't add any additional goods. I don't think goods are in short supply. > you get the product(s) first leaving others to go without Luckily the person able to solve that problem—the producer of those goods—just got a whole bunch of money by selling the goods they had produced so far.

micah94 3y ago
I'll concede I may have conflated the idea of money printing with reallocating existing funds. It's not clear where this money is going to come from. But I get suspicious whenever the govt just wants to hand out money. There are so many other programs handing out money. Why is this one going to be better?
- mcphage 3y ago
  I dunno. But people really like their credit card bonuses, even those things come from credit card interchange fees, which in turn come from raising the prices on goods.

MattPalmer1086 3y ago

Is more money being put into the system, or is it being allocated differently? I can understand that printing more money leads to inflation. I'm having a harder time understanding why taking money from one place and putting it in another does the same thing.