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re: What is the economic impact of dropping bags of cash?
Posted on 11/16/14 at 9:59 pm to HailHailtoMichigan!
Posted on 11/16/14 at 9:59 pm to HailHailtoMichigan!
quote:
If the money is printed, it would have a huge economic boom effect
wrong
quote:
Printing money and giving it to consumers is a net gain for wealth creation
Wrong again--printing money is a net gain of money and money is not wealth. Labor and capital and their products are wealth. Money is simply how we keep score.
Printing money is always inflationary relative to the previous money supply.
Dropping bags of cash in neighborhoods--if those bags were taken from the same economy--at best is a break even deal.
Dropping bags of newly printed money in an economy will drive up prices but over the long run will have no real, inflation adjusted impact on the economy.
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