freedquaker said:
I am an economist with several degrees (bachelor, master's, phd) in economics as well as other related degrees, and with all my heart, I can honestly say that the claim in this post is PURE AND UTTER NONSENSE.
In economics, we differentiate between REAL and MONETARY / NOMINAL variables. Money is not a real variable and Changes of its quantities does not have real long run consequences. Changes in Money supply can NEVER have a positive impact on a functional (properly working) economy and it will only harm it possibly at the cost of some short run benefits. Monetary policy is only instrumental if the economy is away from its long run equilibrium (potential level, as in recessions).
First of all, this is a social science, a study does not find a certain result, they don't have a perfect simulator machine! It is all a thought-experiment after probably some vague economic model. Let me bring it to you, 90% of economic models are wrong (some are inaccurate, most are dead wrong).
Secondly, there are already many countries doing the exact same thing one way or another. Free education, free healthcare, free transportation, free broadcasting, food and rent subsidies etc all are direct or indirect aids to people that amount to way more than $1000 a month per adult. Guess what, they have negligible effect on the level of GDP (but a substantial impact on the income distribution!).
Third, giving away money is nothing but a re-distribution of income, which will create inflation (dozens of countries have already experienced this; Germany, Yugoslavia, South America, Turkey etc...), and instead of handing out money, US should tackle with the more fundamental issues in the country such as those counted above. The vast majority of the disposable income goes to SERVICES in America, and they need to be addressed. A few things that should be done.
1) Fierce price controls on health care and universal completely free (basic) healthcare.
2) Education price controls and free education till college. The number of colleges must be kept to a low (there are way too many colleges in the US, where everyone, even the non-smart people go, and the education level is too damn low).
3) Any private insurance must be entirely abolished. Car insurance or insurance for goods etc are complete scams.
4) Fierce rent controls must be placed especially on public institutions (such as college dorms etc).
5) Fierce property taxes should have a certain bracket of exclusion. For instance, depending on the state, say houses valued less than 50K must be excluded from property tax. On the other hand, government should pay a certain amount of rent for everybody below a certain income level.
6) Eliminate the Wall Street and Federal Reserve entirely, and give the monopolistic non-interest yielding money issuing right to the American state.
etc etc etc...
However, I know none of these will happen because the US and the government is entirely hijacked by corporations and everything is run by a business model. It is not about the level of income (as US is rich enough to have a very comfortable life for everybody) but it is the distribution of it.
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