No. of Recommendations: 6
The printing of money to fuel inflation is like trying to prime the pump
of a dry well.


Thing is, the printing is compounded by how the created money is distributed. The premise the mob was sold wrt "supply side economics" was hand all the money to the rich, they will expand production, creating "jobs". Supposedly, demand to absorb the expanded production will magically materialize. That is where the flaw is.

The mob does not have the resources to buy more stuff. Labor unions have largely been gutted. Pay is generally stagnant. Company paid pension and retirement health insurance are a distant memory for most. Meanwhile, some costs have soared, like higher education, as state funding cuts have added to the general increase in college's running costs. The mob has drawn down savings and run up record high debts trying to maintain their current lifestyle. Pols pressure the Fed to suppress interest rates farther, so the mob can service more debt to keep the economy ticking.

If the objective was to increase demand, the thing would be to either reduce the debt load, or increase the income, of the mob. But that would be "socialism". I remember Sean Hannity bellowing years ago about "socialist redistribution" at any attempt to direct even a penny away from the "job creator class" to the people that the "job creators" depend on to buy their goods and services.

Steve
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