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re: What is the economic impact of dropping bags of cash?
Posted on 11/16/14 at 9:01 pm to Taxing Authority
Posted on 11/16/14 at 9:01 pm to Taxing Authority
It depends on where it comes from.
If it was new printed money, it will create inflation, probably a net economic negative.
If it is wealth redistribution as in taken from producers and given to nonproducers, it weakens the incentive to produce and therefore is a net negative.
If it is neither of the above in some theoretical case, it is net nothing, no gain or loss.
If it was new printed money, it will create inflation, probably a net economic negative.
If it is wealth redistribution as in taken from producers and given to nonproducers, it weakens the incentive to produce and therefore is a net negative.
If it is neither of the above in some theoretical case, it is net nothing, no gain or loss.
Posted on 11/16/14 at 9:45 pm to Stingray
quote:
If it is wealth redistribution as in taken from producers and given to nonproducers, it weakens the incentive to produce and therefore is a net negative.
Let's explore this statement.
So if it is wealth redistribution taken from the takers and given to producers then it is break-even? If it is taken from producers and given to other producers then it is also break-even, but if the benefactors are poors then it is a net negative?
I'd like to see the math behind that.
This post was edited on 11/16/14 at 9:48 pm
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