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I think that if instead of QE, the fed just sent every US citizen, no questions asked a check for 1/300 000 000 of the total value of the programs, the economy
by venomsnake 12y ago
I think that if instead of QE, the fed just sent every US citizen, no questions asked a check for 1/300 000 000 of the total value of the programs, the economy would have been in better shape right now and we would have healthy levels of inflation.
- krschultz 12y agoThat concept is called "helicopter money", and there is an interesting debate about whether or not it would have worked better than QE. I think it would have, but I also think that it is unreasonable to think that it would be the topline QE number divided by number of citizens. The QE money wasn't spent directly. It influences interest rates, and interest rates are extremely low right now. You have pretty terrible leverage, so it takes a huge topline number to sway anything.
- venomsnake 12y agoThe problem with QE was that banks did not lend the money. When you give money to people in the 99% they get injected into the economy immediately. They buy instantly goods and services. Although vouchers would have worked better though instead of cash. So people are forced to spend the money.
- ssharp 12y agoThe previous administration sent out stimulus checks in 2008, I believe. The economy still tanked a few months later.