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by sdljfslkjfdsj
3128 days ago
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It's stunning that anyone who has witnessed per asset class appreciation (consider wages an asset class as well) since the GFC could believe what you said. Inflation obviously helps those in debt but QE didn't inflate anything except risky asset classes objectively held by the wealthy. Even by the feds own studies & public communications by the chair woman inflation continues to remain "subdued" almost 10 years after. Wages have stagnated & only recently picked up, GDP has been the lowest post-recovery ever, net household debt is again at new highs, interest rates at forever in the history of human civilization lows. Meanwhile every single risk seeking asset class primarily owned by the wealthy has appreciated to levels last seen at prior bubble peaks. QE helps the rich & if it helps anybody else it's an accident. Sadly by the time non-rich households are able to participate in risk seeking asset classes they are so expensive that when objectively measured against historical readings future returns are flat to negative. Uncle Warren said "the fool does in the end what the wise man did in the beginning" & QE will guarantee the non-rich fall into the same foolish traps. |
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Between the two of us, one has a degree in economics from one of the top universities in the US and is posting under an established, identifiable handle. The other is posting from a brand-new throwaway account.
I'm willing to accept that I might be wrong about things sometimes, but when a random, anonymous person on the Internet says they're "stunned" by me paraphrasing an established economic principle, I'm going to be pretty unconvinced unless they present some compelling evidence and solid analysis.
As for the rest of your comment, even if one takes your statements about the current state of the world at face value, it doesn't leave you anywhere. You can't generalize entire economy of the last ten years and assume that it reflects the effects of quantitative easing (and no other confounding factors).
I don't really want to litigate the post-2008 economy here, because that's pretty off-topic. In the context of the orginal statement - the claim that "basic income would be better than EQ because QE primarily benefits the rich" - yes, it's pretty clear that that goes against a rather straightforward and established body of both economic theory and empirical research.