RE: TED talk: It's the middle class consumers, not the rich who create jobs
May 20, 2012 at 5:22 am
(May 20, 2012 at 5:01 am)kılıç_mehmet Wrote:Quote:..."running low on money?" Kilic, you have NO idea how governments and their treasuries work in the modern age, do you.Then it must be that it cannot afford to inject more liquidity into the system.
I'm just stating whatever that comes to my mind. Obviously, I'm not an economist, but I really can only think of two reasons at most.
It could, but the way the world market works these days means that injecting any substantial amount of money into the total financial market would fuck over everything. I thought of this when the bailout happened [$700 billion to the banks], wondering "well why didn't they just divvy that money up instead to every single citizen of the US?" Supply vs. Demand. If suddenly every individual in the US was a millionaire, it would drastically increase inflation because everyone would have tons of money and could buy everything they wanted; demand for everything would go up but supply would not have gone up significantly, and when demand goes up against supply, prices increase exponentially. Basically, within a few months, a chicken sandwich at Wendy's, normally costing $5, would instead cost around $5,000.
There has to be a basis for sudden infusions of cash, and the government simply saying "we want more spending" doesn't usually cut it. Keep it in the hands of a few, it stays valued, put it in the hands of many, it loses value. It may seem like a bad thing at first, but only to a utopian idealist. In truth, it shouldn't be given to ANYONE, that quantity; not the rich, not the poor. The poor, a bit, to alleviate their problems, or to bring them up to a more acceptable level with the higher classes above them, and technically, the US government DOES do that in the form of social security, food stamps, tax refunds, and so on and so forth.
Economics is the biggest factor in the world these days, higher even than military might [if you need evidence of this, just look at the F-35 JSF program in-depth]. As the old street saying goes: "don't shoot your dealer."