> The efficacy of QE is debated, but if that does not work, they could try more radical, untested approaches, such as giving money directly to individuals
For one thing, QE was a massive handout to debt holders (banks, asset managers, hedge funds) which took (essentially public funds c/o inflation) and indirectly gave it to the wealthy by purchasing assets at prices way higher than "market" at the time.
Perhaps it worked, but it also created a lot of resentment. In some ways, giving money directly to individuals would have been more fair, perhaps we wouldn't have the current radical shift right in the US, resulting from people fed up with the elite coastal beneficiaries of the past system.
Unfortunately, giving money directly to individuals would not have solved the past crisis because a lot was about the downward spiral of asset prices and how that forced more collateralization and reduced bank equity. However, a more balanced approach that solved the mortgage issues for the common person would have been better.
As for the country's economy being screwed. In some ways, we are now. Just that there are winners and losers. Holders of real assets won (massive home inflation continues.) And paycheck-to-paycheck individuals / renters / youngsters lost. Speak to a young person now [who doesnt work at a FAANG] and you'll find someone coming to terms they may never own a home or put down roots. Its a massive turn away from the classic American dream and social contract. Thats pretty screwed up.
For one thing, QE was a massive handout to debt holders (banks, asset managers, hedge funds) which took (essentially public funds c/o inflation) and indirectly gave it to the wealthy by purchasing assets at prices way higher than "market" at the time.
Perhaps it worked, but it also created a lot of resentment. In some ways, giving money directly to individuals would have been more fair, perhaps we wouldn't have the current radical shift right in the US, resulting from people fed up with the elite coastal beneficiaries of the past system.
Unfortunately, giving money directly to individuals would not have solved the past crisis because a lot was about the downward spiral of asset prices and how that forced more collateralization and reduced bank equity. However, a more balanced approach that solved the mortgage issues for the common person would have been better.
As for the country's economy being screwed. In some ways, we are now. Just that there are winners and losers. Holders of real assets won (massive home inflation continues.) And paycheck-to-paycheck individuals / renters / youngsters lost. Speak to a young person now [who doesnt work at a FAANG] and you'll find someone coming to terms they may never own a home or put down roots. Its a massive turn away from the classic American dream and social contract. Thats pretty screwed up.