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comment by uhsguy
uhsguy  ·  608 days ago  ·  link  ·    ·  parent  ·  post: Pubski: August 24, 2022

Yeah and that would be a good idea in another year or 2 when we’re in there middle of a depression/recession and we need a bunch extra money to jump start the economic activity. But right now with real inflation somewhere in the teens and official only 8% the extra money isn’t going to help with the inflation at all.





goobster  ·  608 days ago  ·  link  ·  

And it is dopey comments like this - fully liberated from logic or even a basic understanding of the topic at hand - that forced me to mute your account originally, and reinforces that I have made the right decision.

Good lord, man. Think for even half a second before posting whatever flows out of your head.

(It's not "extra money". Nobody has been - or will be - given a check. Their student loans will be simply reduced by $10k.)

uhsguy  ·  608 days ago  ·  link  ·  

It is extra money 6% (actual rate might be higher) of 10k is 600 annually or about the same as the stimulus check. There is a bit of an assumption that the amount was being paid which in some cases it wasn’t but it’s real money that will go buy groceries, gas or Nikes or PlayStations. It does contribute to inflation as before it was money that was being pulled out of the economy and now it’s available to spend.

Inflation is caused by for the most part having more money chasing a fixed number of goods. This will increase the amount of money just not by an immediate 10k but a percentage of it. There is no free lunch.

kleinbl00  ·  608 days ago  ·  link  ·  

Economically? It's not "extra money". It's "reduced debt service." Debt forgiveness allows people to redirect their capital from useless purposes to useful purposes.

uhsguy  ·  608 days ago  ·  link  ·  

Yes but since the debt was to the government the result is an net increase of spendable dollars chasing fixed quantity of goods. Hence inflation equivalent to the amount of debt service being paid (not the lump sum).

kleinbl00  ·  608 days ago  ·  link  ·  

I think the minute you're arguing angels-on-the-head-of-a-pin points like "is revolving credit inflationary" you've lost the script.

uhsguy  ·  608 days ago  ·  link  ·  

Idk how large the amount is probably not any worse than renewing 7k credits to Tesla buyers. There are a lot of folks with debt though and they only build some tiny number of Teslas. That money is all going to go right into circulation though instead of pumping equities or real estate though.