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by eellpp 3721 days ago
How about gov do quantitative easing for these student loans. Basically provide contracts and various incentives for companies that are employing these students who have loans. Also to various vendors like house owners etc who provide service to these students. This would create a negative impact on students who did not took loans or got good jobs and paid up in time etc. But that's how largely it was done for QE also.

/s

2 comments

You can't inject wealth into the system at the demand side like that! The rabble will spend it all on natty ice and chalupas! Gotta give it to the job creators!
"QE for the people" is essentially just Basic Income.
Sort of:

Just this morning Ray Dalio commented in an interview on problems with Fed controls via interest rates or injecting money via QE, vs times when the economy might respond better to 'helicopter money' or injecting money directly to the people.

http://www.marketplace.org/2016/04/06/world/economy-debt-cyc...

I'm reading further than the Dalio comments, but if one were to implement Basic income with some ratio of "helicopter" injection selectable by the Fed, it would give the Fed another control pedal to better manage the economy. In particular, when investment level injection is just circulating among the financial circles and not making it down to the main street economy which cycles money with buying and selling of more real goods.