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money given to individuals goes directly into the economy and increases GDP money pumped in via QE only enables companies to buy back their own stocks usually and does nothing for the general economy
QE only enables companies to buy back their own stocks usually and does nothing for the general economy
Do you really believe that?
Without OE and other Fed actions the overnight funds market would have stopped working, actually it did stop working for a time, all sorts lending would have either stopped or become much more expensive - cars, mortgages, credit cards, students loans, business loans - that certainly do/did impact the general economy etc.
I am sure Governor Whitmer of Michigan (D) means well, but she wants to mail out $500 checks to "help Michiganders fight inflation." It sounds like there is enough support in both parties to do it - who wants to be voted out when your opponent can shriek that you don't "care" about "people suffering" from inflation? Free money wins.
It sounds nice, but won't that actually be inflationary?
Basic Econ textbooks for high school will tell you that if you increase the supply of money, but goods remain the same, inflation goes up.
Isn't she just making more dollars chase the same amount of goods so that prices will be bid upwards?
Whitmer isn't exactly a genius, she was the governor that kept putting Covid patients into nursing homes a full 2 months after all other 49 states had stopped and a full month after her own investigation said to stop immediately.
Oklahoma is sending out $75 checks. Red state, red legislature. I would say its not inflationary because the money is has already been created and its sitting in the states accounts. Either they give it to the public or spend it some other way. Michigan cannot expand the money supply.
Michigan is not printing money. They are not the fed. Either the state is going to spend it elsewhere or give it back to the people. I am fine with them giving the people their own money back.
Michigan is not printing money. They are not the fed. Either the state is going to spend it elsewhere or give it back to the people. I am fine with them giving the people their own money back.
But Michigan is vote buying. I guess you’re OK with that.
But Michigan is vote buying. I guess you’re OK with that.
I am not ok with vote buying. But that is your characterization of what it is.
Personally I think suspending the gas tax for the rest of the year, federal and state is the best way to lower fuel costs a bit. Regardless, Oklahoma is giving out checks also. Red state, red legislature, red governor. Is that also vote buying?
Michigan is not printing money. They are not the fed. Either the state is going to spend it elsewhere or give it back to the people. I am fine with them giving the people their own money back.
Most states have budget surpluses with all the covid money they were given.
SC is giving students free tuition for a 2 year CC degree at a technical college if they apply.
SC isn't just handing people free money. They have to earn it.
Most states have budget surpluses with all the covid money they were given.
SC is giving students free tuition for a 2 year CC degree at a technical college if they apply.
SC isn't just handing people free money. They have to earn it.
Most states have budget surpluses with all the covid money they were given.
SC is giving students free tuition for a 2 year CC degree at a technical college if they apply.
SC isn't just handing people free money. They have to earn it.
It just shows you how the feds pumped out way too much money since states seem to have more money than they know what to do with. Not surprising inflation is out of control.
Oklahoma is sending out $75 checks. Red state, red legislature. I would say its not inflationary because the money is has already been created and its sitting in the states accounts. Either they give it to the public or spend it some other way. Michigan cannot expand the money supply.
I clearly said it appears to have enough support from Republicans in Michigan, so no need to make it defensive partisan on your end. Thin skin. I was saying that it was the opposite of what Whitmer claims. She thinks giving out $500 will "fight inflation." It will not.
It is inflationary.
How is more cash in consumers' hands bidding up the same amount of goods not inflationary?
Michigan's government appears to be borrowing the money. So investors who were already looking to park cash are now having their cash go to the masses who will bid up more items with cash that they wouldn't have otherwise had. So we have cash that was looking for an investment feed into the dollars chasing goods at Target, Meijer, and Walmart.
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