Can stimulus ever really *fix* a problem?

MPD

If the problem is a lack of stimulus then yes.

As for real world problems the evidence is all around us, just ask 100 economists and see what the consensus view is.

chewmylegoff

Graham_Devon wrote: »

But the underlining theme of all the swings is that they are always bassed on fear of a market without further stimulus.

No they aren't

The rises are always on the back of the market adding more stimulus. And around we go.

No they aren't

padington

antrobus wrote: »

Otherwise known as 'helicopter money', as suggested by Milton Friedman, a Nobel prize winning economist.

They tried in in oz around 2009 didn't they and it worked quit well. Everyone got a cheque.

http://www.telegraph.co.uk/finance/recession/5341306/Australians-get-900-cheques-from-government-to-boost-spending.html

New mothers also enjoy a wedge of cash for each new child.

If they did it here they should link it good behaviour, I think it would be a smart move if done in moderation when deflation is threatening.

chewmylegoff

padington wrote: »

They tried in in oz around 2009 didn't they and it worked quit well. Everyone got a cheque.

http://www.telegraph.co.uk/finance/recession/5341306/Australians-get-900-cheques-from-government-to-boost-spending.html

New mothers also enjoy a wedge of cash for each new child.

If they did it here they should link it good behaviour, I think it would be a smart move if done in moderation when deflation is threatening.

Yeah but in the 11 years before the Aussies did that, their budget had been in surplus or flat and their financial assets exceeded their debt. It is much easier to start giving money to everyone when you don't already have net debt of close to 100% of GDP and a yawning great budget deficit.

padington

chewmylegoff wrote: »

Yeah but in the 11 years before the Aussies did that, their budget had been in surplus or flat and their financial assets exceeded their debt. It is much easier to start giving money to everyone when you don't already have net debt of close to 100% of GDP and a yawning great budget deficit.

True but what a great way to try to get to a nation of people to feel more like they have a franchise in the economic health of the country as a whole. If we could one day get to a point where citizens receive a share of the wealth in some way like this I could imagine it being a real game changer.

Maybe we could foresee the day when our successful economic trajectory rewards hard work and all those tax payers with a clean police record to recieve a citizens share of the national wealth through cold hard cash.

We often get rewarded by tax cuts but to be honest I never feel it. For me it often doesn't work well as a reward often in the way it might be intended. There is a whole science of praising which I think we could learn from ( make it immediate, linked to better behaviour and obvious). The tax cuts gets lost in the daily outgoings of modern life. A cheque to all citizens when the nation deserves it, i think could be really effective way of franchising success.

But yeah, only when we deserve it.

Mistermeaner

We already give swathes of UK citizens cash for doing f all - it's variously called jsa, hb, ctc, wtc, cb etc

Generali

!Can stimulus ever really *fix* a problem?

Libertarians would say no, that Central bank interest manipulation leads to bubbles which is merely the expression of inflation through asset rather than goods markets. Each wave of manipulation leads to an ever greater boom which ends with a hyperinflationary "crack up boom" where inflation finally leaks over from asset markets into the economy as a whole.

Funny Graham, I didn't have you down as a Libertarian.

padington

Generali wrote: »

Libertarians would say no, that Central bank interest manipulation leads to bubbles which is merely the expression of inflation through asset rather than goods markets. Each wave of manipulation leads to an ever greater boom which ends with a hyperinflationary "crack up boom" where inflation finally leaks over from asset markets into the economy as a whole.

Funny Graham, I didn't have you down as a Libertarian.

It's partly this Peter schiff argument which made me eventually sink everything I had into property.

It's the argument the left need to adopt. It prophesies a huge disparity between rich and poor.

A hunger games future.