Posted on 01/09/2015 1:19:20 AM PST by Olog-hai
It sounds at first like a crazy thought experiment: One morning, every resident of the eurozone comes home to find a check in their mailbox worth over €500 ($597) and possibly as much as €3,000. A gift, just like that, sent by the European Central Bank (ECB) in Frankfurt.
The scenario is less absurd than it may sound. Indeed, many serious academics and financial experts are demanding exactly that. They want ECB chief Mario Draghi to fire up the printing presses and hand out money directly to the people.
The logic behind the idea is that recipients of the money will head to the shops, helping to turn around a paralyzed economy in the common currency area. In response, companies would have to increase production and hire more workers, leading to both economic growth and a needed increase in prices because of the surge in demand. …
(Excerpt) Read more at spiegel.de ...
No one will invest in a one time blip, they will just raise prices
More free cash just handed over to the Soros Billionaire Oligarchs.
What could go wrong?
Ponzi schemes NEED mo’ money else it sticks it’s head up it’s ass.. looking for other peoples money.. to filch..
The U.S. has tried this several times in the past with Economic Stimulus payments.
Couldn’t possibly lower taxes. Someone has to pay for this free money. Plus it wouldn’t be fair to those that don’t pay taxes.
I recently returned from a project in Dresden. A friend there told me why we couldn’t find anyone to work with a particular skill set. One can work 10hours a month and get 3000euro worth of “free” benefits or work 160 hours a month for 3000euro. Guess which people chose?
How much longer can that math work?
There has to be either a reset coming or the hammer of a fascist, dictatorial, intrusive, spying and paranoid, all consuming government.
“The logic behind the idea is that recipients of the money will head to the shops, helping to turn around a paralyzed economy in the common currency area. In response, companies would have to increase production and hire more workers, leading to both economic growth and a needed increase in prices because of the surge in demand. …”
But the logic fails when the people shop for lower prices and most of the goods are imported, or they buy things with no local content.
If socialism worked every country would just print money and give it away to grow their economy.
And then, pass a law, or better yet an executive decree, declaring every day to be a nice day.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.