To Fix The Economy, Let's Print Money & Mail It To Everyone

[magical thyme]

25. I am aware that more dollars chasing fewer goods = inflation

I am also aware that we have been barely avoiding deflation, with home prices and real income plummeting and stagnant (in real terms plummeting), even while essentials such as oil and food are rising. (And yes, I'm also aware of why oil and food prices are rising.)

The $16 trillion given to the banks was supposed to end up in our hands via loans. That would actually have further increased the monetary supply, since banks loan out more than they have in reserve.

That $16 trillion instead ended up in more gambling on the same "investments" that led to the 2008 crash, as well as new real estate "investments" this time in renting out homes that once were privately owned. That's all going to come crashing down anyway.

And in the meantime, that $16 trillion is *not* circulating (and the speed of money circulating has at least as much to do with inflation as does more dollars chasing fewer goods) so for all intents and purposes, doesn't exist.

Give that same amount to taxpayers. A large number of them will use it to pay down debt, which in the case of the trillion+ in outstanding student loan debt will often go right back to the Federal government. In the case of mortgage debt, will go back to the lenders to beef up their reserves as well as freeing up those homeowners.

For myself, I would #1 pay off tens of thousands in FAFSA loans, so it would go right back to the Federal Government. #2 fix up my little house so that it was carbon neutral, which btw, would reduce oil/gas consumption #3, fix up my aging car (again reducing oil/gas consumption, and #3 quit working and live off it until I can collect social security, which would free up 2 p/t jobs for younger people who need work and again reduce oil/gas consumption.

I'm probably not alone. I expect a *lot* off people would use the money pretty wisely, having suffered so much in the last 6+ years.