From what i understand the government doesnt print more money because if everyone has more money then there is more demand and prices go up. But what if they printed money but only gave it to, lets say, the 7 million poorest people. in a country with 300 million people it couldnt possible create inflation if 7 million people have more money
From what i understand the government doesnt print more money because if everyone has more money then there is more...
Jayden Brown
Carson Lopez
>it couldnt possible create inflation if 7 million people have more money
Of course it could. Supply and demand. The people who were poor now have money. They will now spend that money to buy goods and services, increasing demand. Prices go up.
Ayden Garcia
But its 7 million people distributed in a huge country, and there isnt a shortage, there is a lot of extra supply
Anthony Ross
>But its 7 million people distributed in a huge country
Doesn't matter. You've still injected money into the economy that will circulate.
>there isnt a shortage, there is a lot of extra supply
Unless supply actually increases, prices will go up. If there already exists excess supply, then the market is inefficient and prices should be falling.
Cameron Perez
obama printed $4trillion and gave it straight to wall street to bail them out
Sebastian Ward
>implying people would predictably go out and spend money with their extra gibs like a bunch of robots
No. Most of the extra gibs would be used to pay off their existing debt just to keep their lights on, keep up to date with bills and maybe not skip lunch or dinner every other day. Any excess and they would just save it, creating little or no change demand thereby barely affecting prices.
Only a tiny minority would go out on retarded spending sprees which unfortunately """fiscal conservatives""" love to base their entire economic fantasy models on.
Joshua Ortiz
No actually. A lot of the bailout money was loaned and has since been paid back.
Okay. They pay off their debt. Now whoever held the debt has more money. Now either they spend it or save it.
Chase Harris
it hasent been payed back, show proof
Andrew Cooper
Federal Reserve financial statements and reports from the Government Accountability Office.
Jeremiah Rodriguez
No money was ever printed. It was just an asset swap. Thats why inflation has consistently remained very low and hyperinflationistas got made bankrupt
>"Now, what these reserves are is essentially deposits that commercial banks hold with the Fed, so sometimes you hear the Fed is printing money, that’s not really happening, the amount of cash in circulation is not changing. What’s happening is that banks are holding more and more reserves with the Fed.”
pragcap.com
pragcap.com
pragcap.com
David Davis
I DIDNT MEAN PHYSICAL MONEY RETARD
Blake Sanchez
woah lad that escalated quickly, calm down a bit
Carter Murphy
Don't worry, pretty sure he's just a /pol/tard who is upset that reality doesn't match his boogeyman fantasy.
Wyatt Phillips
the fed has 3 things they focus on:
1. maximising employment
2. stabilizing prices (in Europe they want their HICP to grow by 2% a year, we're kind of similar in that regard)
3. moderating long term interest rates
They are the sole organization that can print money and, mas o menos, controls credit
>b-but banks create credit
yes, but the fed stipulates effectively how much they can create.
Thus, it's not in their job description to do something like that to start with. Sure, they can pursue expansionary policy, but that only really helps with point 1, not with points 2 & 3.
Assuming they did though, it's arguable what would happen, don't listen to the schmucks advocating one side or the other. What you're referring to is an actual thing, it's called helicopter money and was advocated by people like Friedman, funnily enough.
en.wikipedia.org
knock yourself out
Ian Barnes
from what i understand it only creates inflation if the demand exceeds the hability to produce the supply. but if the production can catch up then there is no inflation. Capitalism is founded on a lot of consumption
Evan Brown
my point refers to a scenario where the fed belongs to the government
Adrian Brown
it does technically, but acts independently of it (theoretically). So do you mean like if Trump told the fed to print money for these people?
Austin Thompson
not necessarily trump. Im not from the usa, in my country the central bank doesnt act independently.
Julian Hill
Oh in that case, the helicopter money article is still what I'd read up on, it still holds.
what country are you from?
Josiah Cox
Argentina
Brayden Collins
OH
good fucking lord dude good luck with that my man
Argentina's a mess
Josiah Perez
>yes, but the fed stipulates effectively how much they can create.
Not really. The Fed has very little control over the demand for credit, which is mostly decided and supplied by private sector banks.
Nathaniel Sanders
More dollars = value of dollar going down.
Am I missing something here?
Christopher Ramirez
about 20 trillion in debt
Jace Watson
fed reserve shill
Blake Clark
>Only a tiny minority would go out on retarded spending sprees
it's almost like you have absolutely zero contact with poors
this is why welfare states around the world NEVER just give out money, they provide services without the poor being charged for it, so that the retarded poor can't instead exchange money doled out for them for drugs or donate it to their church
this is why food stamps were changed into EBT, in order to restrict their exchangeability because basketball americans are apparently incapable of feeding themselves