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.

Print the post  


This is a Politics Free Board
Politically charged posts are not permitted on the Metar Board. If you make a political post, and it is alerted, the post will be removed. Thanks!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.