In an economy with 9% [un]employment or more, factories lying idle, goods languishing in warehouses, printing money stimulates demand and puts people back to work. Inflation happens when there's more money to chase the same amount of goods and services. But when people are unemployed, you can increase the amount of goods and services and prevent inflation.
Still on with this, are we?
What is there to buy? What do you need? What do I need? I could
use a vacuum, that's for sure. But my needs are pretty much met. All I need is enough money coming in to replace the stuff that goes out on consumable expenses. Any extra money is spent on junk; wasted on non-essentials; thrown into causes and products that provide no real return.
Driving an economy by encouraging people to spend money on useless junk? Not a plan.
And even worse: buying more useless junk still won't help with your idle factories and unemployed people, since little of the junk bought is actually manufactured domestically.
Currently inflation is at less than 2%, despite several decades of deficit spending and three years of economic stimulus.
The fact that there is any inflation at all should tell you that more money thrown blindly into the system is not the answer. A consumption-driven approach is not the solution.
But we've been over this before; you seem dead-set in thinking the world is run by bunny rabbits in marshmallow hats. I don't see that changing.
Jon
Love your enemies!
™ Version 4.2
