10 trillion and 0 reserve requirements, is what made stock market recover. The real economy, I do not see it getting back to normal any time soon. The way we spend even on small things have changed. We would need at least few years to go back to real normal, but even with that, how many small business will never reopen or go bust in near future? What effect will mass work from home, will have on commercial RE and so on.
Why Our Economy May Be Headed for a Decade of Depression
- Thread starter R1234
- Start date
Exactly. We really have to wait to see what happens after the months of stimulus stops and when all businesses are allowed to re-open. Then we see where the new equilibrium is.
My guess is that support will be continued, much like UBI, and the market will accept this. It will shrug off the huge debt levels, until the US dollar one day starts losing value and then nothing will stop it since they clearly won't be able to raise rates. But I figure this won't happen for years.
M
morganist
Or you could just find another way of stimulating economic growth.
Ever heard of supply side stimulus.
http://morganisteconomics.blogspot.com/2018/05/an-answer-to-pay-disputes-make-sure-you.html?q=r-paid
http://morganisteconomics.blogspot.com/p/supplementary-income-sasi.html?q=r-paid
Letters.
http://morganisteconomics.blogspot.com/2018/05/letter-to-uk-government-ministers.html?q=r-paid
http://morganisteconomics.blogspot.com/2020/02/letter-to-chancellor-of-exchequer.html?q=r-paid
Or pension saving alterations.
http://morganisteconomics.blogspot.com/2019/03/pension-pumping.html?q=pension+pumping
http://morganisteconomics.blogspot.com/2019/03/optimal-pension-saving.html?q=optimal+pension+saving
http://morganisteconomics.blogspot....-can-be-taken_8.html?q=optimal+pension+saving
I have done my part as an economist. I have developed new techniques that can generate economic growth and I have communicated them to the government. I also sent it to the President of America. You can chase him up on it if you want. See below.
http://morganisteconomics.blogspot.com/2020/01/letter-to-president-of-america.html
M
morganist
Or you could be active in making sure the economy is successful through new macroeconomic policy. In the United Kingdom pension saving alterations and pension reform have enabled to the 2% economic growth rate to be hit over the last decade. See below.
http://morganisteconomics.blogspot.com/p/success.html
Just switch school of economic thought.
Pension reform is never going to happen here in the US. Its all splintered state by state and held hostage by the individual unions. An example: every 20 years NY state has a constitutional convention where the constitution is revised and real pension reform could have happened. In 2017 public sector unions shipped their voters by the busload to the convention in order to vote down any such amendments. The US is not like most other G7 countries, there are massive inefficiencies, special interest lobbies and distortions across the board.
M
morganist
In terms of pensions it might help if it is state level, that way you can get state level economic control provided. There are ways of doing it without costing anyboby anything and getting great results. What about supplementary income, it is another method of increasing growth.
Who is benefiting from creating this disconnect?
Your first statement is perfect.