You understand this only helps in the short term right? Yeah we'll live, we'll also be poorer than ever at the end of this, and someone's gonna have to pay back this debt.
Yes, of course everybody understands that. Most also understand that the reason for being “poorer than ever at the end of this” will be because of the event itself and not the response to it, will understand that we will collectively have to “pay back this debt” and that either of these facts affect the suitability or otherwise of guaranteed income policies.
>>> the reason for being “poorer than ever at the end of this” will be because of the event itself and not the response to it
I'd beg to differ on that. If the economy was left to crash, the cost of housing and rent could go down, which is the main expense for most households.
What the cash injections are doing is holding these high at all costs, transferring money to those who already have assets. The non owner classes will be poorer than ever, facing ever unaffordable housing with extra taxes to cover the bailout debt.
Instead of this. The government could decide that leases for the tax year 2020-2021 are getting their prices slashed 10% and there would be different consequences on the economy.
It's all largely driven by human decisions. The virus has no say in that.
It’s in effect a very low interest loan which will keep people from selling assets when the market is down. That’s a huge net positive relative to not doing this.
If it can minimize the odds of a depression, it might even be a cash flow neutral option.
.. fortunately, this is being borrowed at 0.1%. And we can go lower. Expect to see negative rates. The irony is it might have to be a Tory government that raises taxes to cover it.