[gaius]

More generally, it’s a problem with confusing a thing with the symbol of that thing. You can’t make people richer by printing money and just handing it out, tho’ that doesn’t stop governments trying it (quantitative easing being the latest example). No mere coincidence that the same governments think they can educate people by printing and handing out degree certificates.

[AnthonyMouse]

> You can’t make people richer by printing money and just handing it out, tho’ that doesn’t stop governments trying it (quantitative easing being the latest example).

That actually does work pretty well, because it causes people to spend money. If you had none before and the government prints some and gives it to you, now you have some and can spend it. If you had some before and you know the government is going to be printing more, you want to spend it before the inflation reduces its value.

As long as the things people are stimulated to buy are economically productive, it increases real wealth.

The thing you have to be careful with is combining it with policies that cause people to spend the money on unproductive things. See housing bubble.

[UncleEntity]

I used that argument during my counterfeiting trial, didn't go over too well until I started talking about broken windows...

[thaumasiotes]

Counterfeiting is one way of creating money and is generally unpopular.

But making loans is a more mainstream way of accomplishing the same thing, and is in fact often considered to promote growth.

[skookumchuck]

Loans don't make people wealthier. The loans are backed by collateral, and have to be paid back. It is not at all the same thing as counterfeiting.

[opwieurposiu]

We use a fractional reserve banking system. Currently the reserve ratio is 10% for large banks. Therefore when you get a loan, 90% of the money you get from the bank the bank conjured from thin air. Loans are backed by 90% nothing.

[skookumchuck]

Loans are not made to people who do not have collateral. That's what backs them.

[thaumasiotes]

Sure, making loans is not the same thing as counterfeiting.

However, viewed in terms of effect on the money supply, it is the same thing as counterfeiting. They both increase the money supply.

[notfromhere]

Loads generate lots of wealth if they're used effectively, and great at creating problems if used irresponsibly.

[cortesoft]

It is a modern day cargo cult.

https://en.wikipedia.org/wiki/Cargo_cult

[TheOtherHobbes]

The whole point of the SA article is that you can make people richer by printing money and handing it out.

It's absolutely clear about this. Printing money and handing it out is the best possible strategy if you want a vibrant, inventive culture.

Conversely rationing access is self-defeating. You get a few individuals with giga-wealth and a lot of friction everywhere else, which throws sand in the wheels of future wealth creation.

[skookumchuck]

No, you can't. There's no free lunch. Printing money makes the person with the new banknotes richer, but everyone else holding banknotes poorer. I.e. it's zero-sum.

> if you want a vibrant, inventive culture

Nonsense.

[DrScump]

  Printing money and handing it out is the best possible strategy if you want a vibrant, inventive culture.

... like present-day Venezuela?

[smt88]

> "No mere coincidence that the same governments think they can educate people by printing and handing out degree certificates."

However much disdain you have for college, it's not even close to the same as printing money. Decent, accredited institutions are still mind-expanding.

I think you're also making a different argument. The argument OP and others are making is that education doesn't create wealth. You seem to be arguing that education doesn't create educated people.

[gaius]

However much disdain you have for college

I’m in the UK where the previous government had an ideological urge to get 50% of school-leavers into university and the only way it could do that was massive dilution. The Russell Group are still quality but the gap between them and the ex-poly degree mills is vast. Attending one of those indeed is not really an education despite the certification.