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Jubilee Money to End the Recession?

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Robdemanc
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14 Mar 2013, 10:57 am

This article talks about radical ways to end the recession. I like the sound of 'Jubilee Money', but I understand the objections.

Radical Options for the Economy

The following is an excerpt:

"the Treasury could write a cheque for, say, £10,000 in newly-minted helicopter money to everyone in the country, on the condition that the cheque must be used to pay off existing debts."

BUT:

"If people get it in to their heads that if they run up too much debt, the government will come running to their rescue, what is to stop them running up even more debt in the future?"

Errm...hasn't this already happened if you replace the word "people" with "banks"?

Who wants jubilee money? I know I do because I have no current debts.



Jacoby
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14 Mar 2013, 11:00 am

why stop at 10k why not 10 million?



Robdemanc
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14 Mar 2013, 1:08 pm

Jacoby wrote:
why stop at 10k why not 10 million?


Overkill.



John_Browning
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14 Mar 2013, 2:51 pm

Robdemanc wrote:
This article talks about radical ways to end the recession. I like the sound of 'Jubilee Money', but I understand the objections.

Radical Options for the Economy

The following is an excerpt:

"the Treasury could write a cheque for, say, £10,000 in newly-minted helicopter money to everyone in the country, on the condition that the cheque must be used to pay off existing debts."

BUT:

"If people get it in to their heads that if they run up too much debt, the government will come running to their rescue, what is to stop them running up even more debt in the future?"

Errm...hasn't this already happened if you replace the word "people" with "banks"?

Who wants jubilee money? I know I do because I have no current debts.

Printing up free money is not a solution. It becomes worthless that way. See post-WWI Germany.


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John_Browning
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15 Mar 2013, 1:54 am

The Jubilee has not been observed for at least 3100 years. It might have been to some degree during the time of the judges, but records are scarce. The Jubilee is one of the points of old testament law that requires a religious theocracy to make it work since there is more to it than economics. Last I checked, mixing church and state wasn't that popular around here.


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minervx
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15 Mar 2013, 7:26 am

There is a difference between money and value. Money is just paper, but value is created when something is being contributed in exchange for that paper. When you give everyone access to a lot of money, it increases demand, and demand increases price. Just like increasing the supply of money, reduces the value of it.



Ichinin
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15 Mar 2013, 11:28 am

http://en.wikipedia.org/wiki/Inflation


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ruveyn
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15 Mar 2013, 2:23 pm

minervx wrote:
There is a difference between money and value. Money is just paper, but value is created when something is being contributed in exchange for that paper. When you give everyone access to a lot of money, it increases demand, and demand increases price. Just like increasing the supply of money, reduces the value of it.


As you say, the value of money is what it will buy.



Robdemanc
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15 Mar 2013, 3:01 pm

minervx wrote:
There is a difference between money and value. Money is just paper, but value is created when something is being contributed in exchange for that paper. When you give everyone access to a lot of money, it increases demand, and demand increases price. Just like increasing the supply of money, reduces the value of it.


But if the money was used to pay off debt that would even out our current economic problems according to the article.