Re:Fed Ends Zero-Rate Era
by RobertoG on Thursday December 17, 2015 @06:31AM
(#10750845)
"When it is patently obvious that 'stimulating demand' by giving someone money can't possibly grow wealth"
But this is not the claim. The claim is somebody trying to buy something with money create demand. We all agree that money is different of real wealth.
Even in an alleged two persons barter economy I could buy from you with a promise of something in the future. If the promise is good enough you could even start producing more.
And this is not even the correct framework, because what we are talking are systemic problems in modern economies that don't map well to hypothetical two persons barter economies.
But this is not the claim. The claim is somebody trying to buy something with money create demand. We all agree that money is different of real wealth.
Even in an alleged two persons barter economy I could buy from you with a promise of something in the future. If the promise is good enough you could even start producing more.
And this is not even the correct framework, because what we are talking are systemic problems in modern economies that don't map well to hypothetical two persons barter economies.