Helicopter Money

cells

michaels wrote: »

It is a bit chicken and egg though - the reason the govt can borrow at less than 1% is precisely because lenders are fairly confident that inflation is not going to destroy the value of the money loaned wheres in the past when govt borrowing cost so much more it was because people had no faith that inflation would be anything other than high.

and the experiment would record what happens to government borrowing costs and public borrowing costs too to see if there is an overall net benefit or positive.

personally I dont think £60B would be inflationary. Maybe as much as two thirds would simply pay down private net debt. Leaving £20B to be spent into the economy which is about 1% of GDP. Personally I think there is a lot of spare capacity in our now mostly service based economy. I dont think prices would increase but that productivity would increase.

CLAPTON

several posters have pointed out we have full employment and give this as one reason why we need to increase the population by 600,000 per annum

why then do we need a money drop?

cells

CLAPTON wrote: »

several posters have pointed out we have full employment and give this as one reason why we need to increase the population by 600,000 per annum

why then do we need a money drop?

we dont need to increase the population by 600,000 to fill immediate jobs, instead a growing population of hopefully mostly young migrants should mean our taxes are lower than they otherwise would be and our services and tax collected base higher than they otherwise would be.

A growing population also offers a lot of positive opportunities. Like regenerating run down areas. And like the locals getting to jump up the skill and pay bands as the migrants take the lowest band jobs


We probably dont need a money drop but it would be interesting to see one done. If its to be done its best done just before or near the beginning of a recession. If the brexit vote is going to cause a recession it might avoid it or make it less harmful than it otherwise might be

Malthusian

cells wrote: »

you wont know for sure unless you run the experiment. its worthwhile doing at least once to get the results.

We have run the experiment. Weimar Republic 1920s, Zimbabwe 2000s, etc etc.

Extraordinary claims require extraordinary evidence and the Corbynites and others advocating that we turn on the money presses have not provided any evidence that the laws of economics have changed since the early 2000s and printing money will not cause inflation.

HornetSaver

I won't count chickens before they hatch.

But I do like the irony of the economy getting a boost of £19 billion at roughly the time Brexit takes place. A boost which was only possible because of the European Commission.

cells

Malthusian wrote: »

We have run the experiment. Weimar Republic 1920s, Zimbabwe 2000s, etc etc.

Extraordinary claims require extraordinary evidence and the Corbynites and others advocating that we turn on the money presses have not provided any evidence that the laws of economics have changed since the early 2000s and printing money will not cause inflation.

I dont see how 100 years ago and today are comparable

I also dont see how a subsistence agri society is comparable to a developed service economy

and no one is saying print the money, the government borrows it at less than 1% and hands it to the masses

CLAPTON

cells wrote: »

we dont need to increase the population by 600,000 to fill immediate jobs, instead a growing population of hopefully mostly young migrants should mean our taxes are lower than they otherwise would be and our services and tax collected base higher than they otherwise would be.

A growing population also offers a lot of positive opportunities. Like regenerating run down areas. And like the locals getting to jump up the skill and pay bands as the migrants take the lowest band jobs


We probably dont need a money drop but it would be interesting to see one done. If its to be done its best done just before or near the beginning of a recession. If the brexit vote is going to cause a recession it might avoid it or make it less harmful than it otherwise might be

we don't need any increase in population to meet either our existing needs or those of the medium term :
the increase in population will almost certainly be in London and the SE where we have an excess of people already
a new influx can only make living conditions worse for the young people

there is absolutely no economic theory nor empirical evidence that the native born get a leg up the ladder : instead their wages are depressed and progress restricted.

System

I think Robert Mugabe is the world's acknowledged expert on the use of helicopter money, with spectacular results.

lisyloo

Don't Amex charge retailers a lot more?

Conrad

It's funny, even the greens are obsessed by relentless growth these days, always arguing for more spending and investment

Dunno but I have a feeling that one day we will get to a point where we aren't obsessed with ever more growth and wealth