Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

General Discussion

Deminpenn

(17,547 posts)

7. Unfortunately, monetary policy can't stave off a recession

Reply to AverageOldGuy (Original post)

Sun Nov 2, 2025, 05:42 PM

Nov 2025

Duiring the Depression, there was plenty of money available at near 0% interest, but the people who needed the money and would spend it had no ability to borrow to get it.

Similar to what happened in 1929, money, through a combination of tariffs and benefit cuts, has been pulled away from the people who spend it.

Tax cuts for the richest Americans won't help because it's a well established fact that those people save the extra money and don't spend it.

Edit history

Please sign in to view edit histories.

Recommendations

1 members have recommended this reply (displayed in chronological order):

progressoid

7 replies

= new reply since forum marked as read

Highlight:

Why has Fed quietly dumped $29.4 billion into ??? [View all] AverageOldGuy Nov 2025 OP

But there's no money to feed kids via SNAP. sinkingfeeling Nov 2025 #1

That's because your pot of money is not Baker's pot or Charlie's pot. Bernardo de La Paz Nov 2025 #4

This is because of the govt. shutdown. They have less deposits to cover themselves. The banks are borrowing Pisces Nov 2025 #2

Government shutdown LudwigPastorius Nov 2025 #3

Exactly. A hell of a lot of demand was pulled out of the economy.... paleotn Nov 2025 #5

. yellow dahlia Nov 2025 #6

Unfortunately, monetary policy can't stave off a recession Deminpenn Nov 2025 #7