SaddamHuseinovic wrote:According to Keynes a state has to spend money in time of crisis. In time of growth the state has to loose debts.
Currently the US distributes money "Helicoptermoney".
Because Restaurants make fewer money and Shops. Coul be a Mega Infrastructure Project lead to growth?
Infrastructure roads, railways, highspeed internet... require all levels of education, small and high.
When the states invest in infrastructure it benefits the real economy up to 40%. Which the state gets return in taxes
Keynes lived during the time of the gold standard.
Now the US$ is a full on fiat currency.
The only constraint on US deficit spending is inflation.
Inflation will only occur with the nation runs out of some needed resource, incl. labor.
Now there is very high unemployment, much higher than the official number.
Now, direct payments are the only way to save millions form suffering some avoidable economic damage. Damage is losing the house they own or being evicted and not having money for a damage deposit and so having to live in a car, etc. This sort of damage will carryon for many years after you
may think they have gotten back in their feet.
In March the CARES Act wasted $3T or $4T with gifts to the 1% and the corps. they own. This is evidence that the US can spend $3T now to save the economy by feeding the money into the bottom of the economy, instead of the top.
Will congress do this. I give it a 0.01% chance.
Later, MMTers suggest that the Gov. hire everyone who wants a job at a socially inclusive wage (maybe $20/hr) to do anything that is socially useful but not profitable for a comp. In a pandemic this may be staying home, so as not to spread the virus. Federal money, but local control.
. . . Note, this assumes the borders are not wide open to anyone to come for that cushy job.
. . . I think that it also assumes that the worker shows up and works. It is not a hand out, it is a job.
. . . Rural people should love this program because it feeds money into their towns. Money that will be spent there to support local businesses. Urban people may even move to small towns for the low rent, to make their wage go further. This may save some towns.
Will congress do this. I give it a 0.01% chance.
Will congress act to save civilization from ACC, aka AGW. I give it a 0.01% chance.
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