Lord Turner hints at Helicopter Drop

daz378

although on a personal level would welcome it , who wouldnt , what would the inflationary consequences be down the line? its true people on lower incomes have a higher propensity to consume..... alas on imported goods mostly, wouldnt it be best targeted at those trying to get on the housing ladder via a deposit scheme which boosts the domestic economy

ILW

If it was issued as some kind of reclaimable voucher which could only be spent on services (not products) it would ensure the money was spent on UK employment. EG the labour element of a home extension.

Graham_Devon

ILW wrote: »

If it was issued as some kind of reclaimable voucher which could only be spent on services (not products) it would ensure the money was spent on UK employment. EG the labour element of a home extension.

I guess the problem would be here (quite rightly) that you are only sending money to homeowners....who have already benefitted quite greatly in many circumstances.

I think any free money would have to be given to all, rather than a favored section of society...especially if it's homeowners, as this would be seen not only as favoritism, but also protecting the wealthy again.

JoshuaJames

A._Badger wrote: »

There is no such thing as free money.

So what is it then? It used to be just helicopter Ben but now its helicopter Merv and his fellow central bankers around the world.

I hear in Japan they have done just that, created trillions of yen out of thin air and given some to each and every member of Japan. So it seems there is such a thing as free money after all. Not that it them any good.

Maybe they should do it again and again, thats the definition of madness if it doesnt work keep doing it.

But that is what all countries are doing now,

ILW

Graham_Devon wrote: »

I guess the problem would be here (quite rightly) that you are only sending money to homeowners....who have already benefitted quite greatly in many circumstances.

I think any free money would have to be given to all, rather than a favored section of society...especially if it's homeowners, as this would be seen not only as favoritism, but also protecting the wealthy again.

Other uses may be a UK holiday where the voucher only covers the labour element, or possibly entry to theme parks, historic sites etc.

No point in giving people money if it is all spent on German and Chinese consumer goods.

CLAPTON

Thrugelmir wrote: »

In the UK people buy status symbols like BMW's , go on skiing holidays or fit granite worktops in their kitchens. So very little is "invested" in a productive sense that benefits the UK economy.

Whatever do you see the purpose of working out to work?
I work to sustain myself and my family to our best advanatge without doing any harm to my neighbours.

Note; the SOLE purpose of 'investment' goods is to produce more 'consumer' products.

CLAPTON

ILW wrote: »

If it was issued as some kind of reclaimable voucher which could only be spent on services (not products) it would ensure the money was spent on UK employment. EG the labour element of a home extension.

Ok, suppose I 'normally' spend 5k per annum on 'services' and 6k on 'products'

Then I am given a reclaimable voucher for 1k to be spent only on services.

So I use it as part of my 'normal' 5k per annum spending thus leaving me with 7k to spend on products.

(figures purely for illustration and don't reflect my true spending.)

JoshuaJames

James wrote: »

I hear in Japan they have done just that, created trillions of yen out of thin air and given some to each and every member of Japan. So it seems there is such a thing as free money after all. Not that it them any good.

I wish they would do that here. Its a really good idea why not give every citizen on the elect register £500. That would be good for the economy, especially just before xmas.

That is exactly what the Japanese did recently exactly that amount or there abouts equivalent in Yen. They have done it a few times over the last few years the UK have not done this yet they just give it straight to the banks.

Where do the £'s come from? B.O.E just types it into their bank account and tranfers it to everyones accounts. Easy as pie.

It would make all the figures look better, record booms for retail and all round. Then they could do it again and again just like the Japanese, you see the global crisis would be over in no time:rotfl:

sheffield_lad

We have had the drop already it's called PPI compensation.

No one dares question PPI mis selling compensation, even the one's who took it correctly are in on it lol, and come on how many on here can say they took it knowingly or not? Very few I suspect.

When I was in sales we had a term for the one's who took it out 'gold nuggets' looks like they were the golden one's after all!

grizzly1911

ILW wrote: »

If it was issued as some kind of reclaimable voucher which could only be spent on services (not products) it would ensure the money was spent on UK employment. EG the labour element of a home extension.

If the money went into building or services such as holidays a good proportion would still disappear out of the country as migrant workers sent it "home".