| Kasz216 said: Additionally it would make it so things like QE and stock market biased economic policies(like those practiced under obama and bernake) help more then just the rich. |
QE does not increase the value of the stockmarket. Just because there's more cash floating about, doesn't mean the values have increased... it's just that the stockmarket has inflation first. Getting more people involved with that is a very bad idea, for 2 reasons:
1) The more "middle class" people who get access to inflationary dollars will spend it faster than what the "1%" do (you know, marginal propensity to consume, and all that gonads). One of the things keeping inflation in some goods relatively low is that the money isn't making its way into the general economy... the more people involved, the faster that money mixes.
2) When people see their stockportfolios rise, for no more reason than the currency has debased, it makes them act as if their portfolios have risen because they've invested wisely... essentially, it makes people act richer than they actually are. This means they start consuming goods that they shouldn't be (indulging in more entertainment, buying bigger houses, getting fancier cars on longer financing plans)... and BOOM, we're in 2005-2007, again.
