Quote:
Originally Posted by Slava
How about just don’t spend it? Things change, and what seemed like a good idea a few months ago might be a bad idea today.
And the whole “it was in the budget” way of thinking is a different point than what I’m alluding to. The question here isn’t whether we can afford this, it’s about demand. This could’ve planned last year, but when people get the funds today it’s new money to them and they spend it now. Policymakers ought to recognize that this is going to boost inflation, which is what they’re working against here.
I’m not suggesting that there’s an easy answer for them here. But fighting inflation by spending money is a new one, I think.
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To not spend it, you’d have to then justify the positive impact on individuals in terms of inflation of not spending it vs the negative impact on individuals who then miss out on the promised supports. How do you do that? What’s the number difference here in terms of money in the pocket that we can show people and justify “hey, we’re not going to do this thing, but you’re better off because _____”? How much is this actually boosting inflation?
And it’s not like it’s exactly “money in the pocket” for some people. For many, especially BECAUSE of inflation, it’s the difference between being able to afford to go to the dentist or not (for example). And then you get into the question of whether the long term healthcare costs of that are higher or lower than the inflation it causes.