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Tony Currie10

I came up with this question some time ago, before the virus, and still haven't had a proper response....

The whole world is struggling financially and this could go on for months yet and the knock ons with family businesses closing down etc, low paid workers AND high paid workers who may not be able to pay mortgages etc could be permanent....

Could the government of EVERY country GIVE people a percentage of what they earn/have in their bank accounts. It's only paper money anyway and done digitally. That way there is more money to keep the economy flowing smoothly.....say give some people an extra 10k, others who are better off through whatever reason 50k. This way the hierarchy stays the same....

We don't need it done physically because cash is on it's way out anyway. Just add a certain percentage to EVERYONE'S bank account digitally....

I'm sure council house tenants could do with an extra 10k to pay off debts etc and be able to spend. This figure is totally off the top of my head though with no thought put in....

Surely, this money will be put back into the economy anyway?

I know there will be a problem with money used for crime etc but I haven't thought through that.... someone else can think of that and sort.

I have asked this question to a few people who think this is a good idea but know that there WILL be a reason that this is pie in the sky....

Maybe I'm too idealistic or just plain stupid....
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Dessip
May help based on the Keynes approach that the butcher, pays the baker, who pays the candlestick maker and the money then stays in the local / national economy.

However the modern way is to spunk the money on an iPhone and flat screen TV which just boosts the economies of South East Asia and the money is then lost to the UK.

I think the government have done largely the right things however people will just take the pi55. We will hear of people folding their companies and starting them up again having written off all the debts and picked up the inventory for a song....a bit like Ken Bates did with us actually

Tough times ahead I’m sure

Got a mention as one of the poshest & dimmest posters - Board Awards 2013/14
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PapaSmurf
The market economy has completely failed. We can expect a return to post World War 2 economics. Lots of private companies will have gone to the wall, some may well be nationalised. Taxes will increase shaply, there will be less disposable wealth, there will be price inflation, curbs on wages, but the flipside is we should get much improved public services. It'll be a different world.
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PapaSmurf
Dessip wrote:
May help based on the Keynes approach that the butcher, pays the baker, who pays the candlestick maker and the money then stays in the local / national economy.

However the modern way is to spunk the money on an iPhone and flat screen TV which just boosts the economies of South East Asia and the money is then lost to the UK.

I think the government have done largely the right things however people will just take the pi55. We will hear of people folding their companies and starting them up again having written off all the debts and picked up the inventory for a song....a bit like Ken Bates did with us actually

Tough times ahead I’m sure


I think the government have been on the back foot from the start. They thought it was going to be like SARS and totally misread the runes. They pursued the wrong policy, then reluctantly backtracked. And since then have been playing catchup. They have sent mixed signals, confusing messages, and failed to follow their own advice. They have done u-turns on testing, masks, ppe, eligibility for state aid, school closures, who is an essential worker etc etc as the crisis developed. Boris even talked about visiting his mother on mothers day as the crisis deepened, whilst telling others to social distance. They should have had the police following through in enforcement,and then disgracefully made them the scapegoats. It's been an omnishambles.
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Dessip
I agree but I meant in terms of the support they have provided to give us the best chance of getting the economy moving once this goes away. Very difficult to create a catch all fix that is fair to FT employees, self employed, businesses, zero hr contractors etc

Actually one of things they should do is stop banks giving mortgages based on joint salaries. They should go back to 3x the main earner. This would see house prices fall and housing costs move back to sustainable levels. Government could compensate those that would be in negative equity..

Got a mention as one of the poshest & dimmest posters - Board Awards 2013/14
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Kingcurrie
Ex boss of the bank of England was on five live tother day claiming that if we don't have an exit strategy soon from the lockdown, then the effect on The economy could see more poverty related deaths than the virus.
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flatcap
An you imagine the response if everyone got ten grand, the pubs, bookies, and all the other toddler outlets would blossom and then there would be untold requests on the government to help the poor people out as they have used their grant up , not on food and kids but on the crap things humans seem to accumulate.....
LEEDS UNITED INTERNATIONALLY FAMOUS WORLDWIDE
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stevethemouse
Glad you are well flat cap stay safe
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Soopaleeds
TC10 - allow me to give you an economic reason: inflation.

If everybody has more money then the price of everything goes up eventually, which means in the long run everybody is back to square 1.
Prices are determined by supply and demand - adding cash to the system doesn't increase the supply of anything.

Economic equation of the day    MV=PT (money x velocity = price x transactions)

You increase Money on the left, but you end up increasing price on the right long term.

I actually think the idea is as valid as bailing out banks in 2009 though - when you only bail out big business what happens is the extra money just sits in a bank account as a big number and doesn't stimulate the economy at all because it has no velocity (it doesn't circulate)
Everybody has a story to tell.     That's why I hide at home [facepalm-smiley-emoticon]
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Tony Currie10
Soopaleeds wrote:
TC10 - allow me to give you an economic reason: inflation.

If everybody has more money then the price of everything goes up eventually, which means in the long run everybody is back to square 1.
Prices are determined by supply and demand - adding cash to the system doesn't increase the supply of anything.

Economic equation of the day    MV=PT (money x velocity = price x transactions)

You increase Money on the left, but you end up increasing price on the right long term.

I actually think the idea is as valid as bailing out banks in 2009 though - when you only bail out big business what happens is the extra money just sits in a bank account as a big number and doesn't stimulate the economy at all because it has no velocity (it doesn't circulate)


Cheers Soopa and at last someone has given me a valid reason to oppose my proposal to be Prime Minister.... in the 'stupid' stakes, it looks like I have gone to being 2nd bottom of the pile on our forum with only Lord Sunnyflaps below me

2020 MONEY MAN CHAMPION

FISHCURRIE PROMOTIONS WORLD CUP 2018 SWEEPSTAKE WINNER....

GLENN HODDLE IS THE FUTURE....

LAST MAN STANDING WINNER 2018
EURO U.21's 2017 SWEEPSTAKE WINNER....
DIMNEST POSTER 2017, 2018, 2019, 2020....
EURO 2016 SWEEPSTAKE WINNER....
3rd PLACE WITH HOLLAND IN ULUFC WORLD CUP SWEEPSTAKE 2014....
JOINT WEIRDEST POSTER 2014....I'd like to thank everyone who voted for me....I think
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Soopaleeds
I disagree.

You'd make a far superior Prime Minister to the one we've got [smile]

(but then again like all handsome, intelligent, superior beings I'm a leftie at heart……..)
Everybody has a story to tell.     That's why I hide at home [facepalm-smiley-emoticon]
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Kingcurrie
If there was a conspiracy to bring down the global economies this would be the perfect time.
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