Quote:
Originally Posted by whell
Well, we at least agree that QE was an exercise in printing money, but it was always meant to be short term. You guys are proposing turning it into an economic fixture and a lifestyle choice.
Yes if people don't work, we wont have enough stuff, even the basics like clothing food and water. Since the marketplace of folks who can afford non-essentials shrinks, all of the Type A folks would be likely be required to work in jobs that support the manufacturing and delivery of essentilals. The economy shrinks, the money supply shrinks as the economy shrinks, and you'd be forced to turn to taxation to support paying folks not to work.
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You've got the whole economics thing backwards. The economy doesn't shrink, it expands because more consumers are spending more money. You're assuming everyone who's now making 40 or 60K a year is going to quit for maybe 20K? Keep in mind this guarantee doesn't do anything to change the economy and people's costs structure. If they have a mortgage, they still have a mortgage. I expect the 20K* guarantee will mostly go to top up people whose unemployment has run out and can't get that much at the part time gigs they are stuck with, or who are stuck on minimun social security, or such like.
*20 K just a notional guess at how much. Maybe less, maybe more.