In any debate, basic facts matter, even if they’re only being used as example to support a thesis. Wrong support tears down the thesis.
Because it doesn’t occur in a vacuum, and it depends on the currency and stability....which is why I made the point that even mentioning Zimbabwe shows either a general lack of knowledge of the issue (and the factors behind the thought) or was a red herring to see if the point was being understood or not.
For example, the US just announced a $10T stimulus package. Interest rates barely budged, stock markets soared. Had Zimbabwe done that, the effect would have been completely different, wouldn’t it? The point is that different countries and currencies have different abilities to both raise money and influence consumer action. We usually call them currency manipulators, because the world’s currencies are meant to make small changes wrt each other, not drastic one day changes, because the entire world lives in some level of stasis...world order, if you will. It isn’t a “one size fits all” approach to an economic principle.
Normally. With this unique strain it finds itself under, and the absence of tax dollars needed, maybe it’s all you can do to fix a short term problem. That’s fine. The subsequent issue is when, how, and under what circumstances do you remove the short term stimulus and whether funding is, thereafter, adequate for the long term health of the system in question. That becomes a wholly political question, based on the needs of the citizenry, the cost and quality of the care they’re willing to pay for, and the assumption that if funding is not sufficient, then cuts or increased tax revenues are needed. With an ever growing population and a sudden, unplanned contraction in GDP, revenues are going in one direction while spending is going in the other. That is not only unsustainable over the long term, but it suggests the entire system is running too close to the edge if a short term shock creates any significant, lasting effects, rather than returning to some semblance of status quo.
You guys have fun.
