Quote:
Originally Posted by Steve_A
Hi ophiuchus,
I can understand the reasoning behind your post. I also think that spending money on something that will not work is wasting money for the sake of it.
However, the problem about giving every family in the US 1, 000, 000 is that it would create an inflation like you will never ave seen before and the million would be worth almost nothing in the end. It would be similar to that African country who's name I don't recall right now where the inflation there is astounding.
I tink the best and only solution is to let the markets take their course. Big buisiness will fail, of course, but this will create new opportunity for new and smaller businesses to succeed.
When your car gets stuck in snow or mud, do you not move the car backwards to then move it forward to try and get out of the rut? Sometimes you have to move one step backwards to move forward.
The problem is that politically there are 'Old Boys Clubs' and everybody is trying to cover the backs of everybody else at the top end. If the US really is the land of opportunity, then the actual, or new government will let the old businesses die and new businesses will be born and will develop with a new mentality, based on mutual help inolving the customer more and respecting more the environment creating a boom (not the bomb type) as never seen before.
Best regards,
Steve
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Hi Steve,
I instantly dismissed the idea of a million bucks per person on inflationary grounds too, but after thinking about it for a while, there is a way around that.
Since most mechanisms of our investment banking system are artificial anyway, the solution would be to institute price controls. Now, if you gave every person in the United States a million bucks, it would take a couple of decades of price controls to prevent companies from charging a thousand dollars for a gallon of milk. But, if you cut a check to U.S. families for say, $100,000, and instituted price controls for five years, that might work. Most will be out of money in five years (purchasing of cars, paying off that default mortage, credit cards, etc.), and therefore Prairie Farms, if they wanted to make money in the post-price control era, could not charge that thousand bucks for a gallon of milk. Price controls would be the key to another major stimulus package to the people. Then you would hear CEOs screaming about fairness and freedom! HA! Inflation is artificial, and can therefore be stopped.