Quote:
Originally Posted by CaptainCrunch
Just printing money to print money never works as an economic strategy, it leads to a massive deflation of the value of the currency not only abroad but locally.
then you end up with a $50.00 loaf of bread and a $100.00 bottle of milk.
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The situation you are painting above, e.g. Germany after WWI, was due to a very unique set of circumstances which is well documented.
In my understanding, we are living in very unique economic times, when there is weak demand for goods and services globally. Expanding the money supply (or printing money) is one way to stimulate that demand, by boosting consumer spending, thereby kick starting the global economy. Naturally it must be done very carefully and methodically in a way that does not lead to hyperinflation.
I do agree that part of the plan is to tax the super rich and upper middle class, and transfer the money to the lower class to spend. I think this sounds good in theory, but practically may have serious consequenses.
Also, over the next while, a lot of money will go into circulation through inheritance, by a generation with a much higher tendency to spend money. This should help the economy to come degree.