This is an awesome solution. Is it scalable? If every individual in the USA was given $1 in snap money would the return be $1.84 into the economy. One negative is where does the $1 come from in the first place? Do we need to subtract the lost of the $1 multiplier from the person the Government steals it from?
Good point. But some of that is foreign borrowed, making it true stimulus. The rest of the printed stuff, despite it being theft, maintains employment at the expense of the gainfully employed. A form of socialism, but keeps bread on the table. All that to say, once it's all baked in, we're headed for something worse than a 20% "haircut".. I think 30% is pretty close
Heads up guys. I think I have this all figured out. Have you ever wondered how much it costs the private-sector economy to provide the government with an additional $1 in tax revenue? The rather shocking answer can readily be derived by the type of work now starting to be done by Treasury's fledgling Dynamic Analysis Division. The cost to the private sector of providing the government an additional $1 in tax revenue is about $2.50 and in some circumstances much more. http://www.cstr.org/commentaries/taxreform/taxnotes-july2606.html Let's do a recap. A dollar in snap generates $1.84 in economic activity which costs $2.50 to collect. Next order of business is to find out how much it cost the gov't to "give" some one a dollar. The plot thickens.... JP Morgan runs the snap program, Wall Mart does the redemptions. Hmnnn.. short the poor... actually short the middle class working chump... no wait go long the guy who has a shit job and gets snap...get a gov't job.....go long unions....no wait cheat on your taxes...sell your food stamps for drugs... no wait..oh never mind...
If it helps, the currency markets are trying to figure out your very question. So far, in Dec., they have no answer at all.
yes... we forget the heavy tax crated by out of control govt spending. Cost of food, oil, heat, gas going up dramatically.
Too late. There is no more money. We're beyond the "one last time". We were beyond it three times ago, and we didn't learn. It is a mathematical impossibility to pay back our debt. Therefore, there is only default and/or currency debasement. Either of those results kill empires.
Well we agree on that. We are past the event horizon. But it seems so very few know that the comet is coming. Maybe it is that so few care. Like Katrina. A cat 4 storm is headed straight for you. If you leave, you come back to nothing. If you stay, maybe you go out with what little you had. I think that is mentality right now.
I agree. Two ways it unfolds, yet same ending. Tax increases and government cuts so drastic that it crushes economies. Or a good ole fashioned jubilee that crushes the creditors. Either way the ending is the same. System collapse - reset. Whatever route....im along for the ride