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To: aMorePerfectUnion

All wrong.

If it was literally “kept in their pockets” the additional cash would be meaningless. Of course, NEVER in a billion years would it be kept in their pockets. There might be one in a billion people who received a $10 mill windfall who would not spend some of the cash.

When the Cadillac dealer has 5,000 people show up on his lot on Monday morning, as opposed to the usual 10 people, do you seriously maintain that the price of the Caddys would not change?

When 150,000 people show up on the beach front property on Monday, instead of the usual 2, do you seriously maintain that the price of the property would be unchanged?

This is incomprehensible lunacy.


84 posted on 05/09/2016 7:13:32 AM PDT by Don Hernando de Las Casas
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To: Don Hernando de Las Casas

“When 150,000 people show up on the beach front property on Monday, instead of the usual 2, do you seriously maintain that the price of the property would be unchanged?”

Increased cost of some desirable things would occur briefly in the climate you describe. This is temporary. It is different than systemic inflation, which is not caused by windfalls. The powerball winners do not cause inflation.


101 posted on 05/09/2016 7:36:22 AM PDT by aMorePerfectUnion (BREAKING.... Vulgarian Resistance begins attack on the GOPe Death Star.....)
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To: Don Hernando de Las Casas

Helicopter money dropped into accounts, which allows only a short window of opportunity for spending; and, will disappear once the expiration date arrives. Forces use it or lose it as an inflation driver at the base of the economy, inflation as a goal advocated by the Fed.

The money dropped on banks was a bad implementation which resulted in increased stock valuation; but, no actual increase in consumer demand and desired business production.


103 posted on 05/09/2016 7:39:57 AM PDT by Ozark Tom
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