because interest rates are low. Funny thing is that's EXACTLY what Trump said and the lemmings criticized him for it.
I thought it was wrong when Trump said it and I still think it is wrong for many reasons.
I thought it was wrong when Trump said it and I still think it is wrong for many reasons.
- The interest rates are low mantra is silly. Very few investors are buying 10 year treasuries yielding < 1%. It's the fed that is buying them and they do it by printing money. It's silly to say borrow now that interest rates are low because there is no ability to pay it back. Just own up and admit that she wants to print money (which can be done at any time and at any interest rate).
- Even if we were actually borrowing the money we would ultimately have to pay it back upon maturity at higher interest rates. Where does she think that money will come from?
- There is virtually no value to more stimulus because savings are at near record highs.
- The weak spots in the economy are things like airlines and restaurants. A stimulus won't increase business for airlines or restaurants that the government keeps closed. The only thing that is accomplished is buying votes. It's fiscally irresponsible and it's poor economics. It's good politics though. 90% will love getting free stuff.
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