The story does not explain how this works so we presume that sending guaranteed checks to everyone means guaranteed higher taxes:
Mayors across the country are giving out thousands of dollars in guaranteed income pilot programs.
Source: The mayors piloting guaranteed income programs across the U.S.
I have yet to find a coherent explanation of how this works other than as a new name for high taxes and redistribution of earnings. Anyone care to explain this to me?
I’ve read Modern Monetary Theory (MMT) and it proposes, basically, we turn over the economy to the Wizard of Oz, who is super smart and can pull all the right levers just right – so that we borrow/spend forever without increasing inflation.
Here is another story that hints the people promoting guaranteed income (more government spending) will lead to wealth destruction so there is then less money to redistribute.
“President-elect Joe Biden’s Covid spending plan could recreate the financial conditions seen in the run-up to the 1929 Wall Street crash, according to one hedge fund manager, with rising inflation potentially responsible for popping an “epic” stock market bubble.”
We’ve gone way beyond “stimulus” needed to help those who have lost their jobs or seen their income cut. It’s become a mad dash to print money and distribute it as fast as possible. These events have not worked well in the past, but of course – wait for it – “It’s different this time”.
Most likely scenario is this market ends when inflation rises. When you print money to infinity, inflation happens. And the market bubble pops on its own, often very painfully.
Unfortunately, I am stupid and I don’t understand how these schemes work in the real world.