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View Diary: Disasters can be defanged by new money creation by Federal Reserve (12 comments)

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  •  Want a new approach to replace destructi (0+ / 0-)

    My proposal is NOT right wing, not snark, and not inflationary.

    Storms destroy things/money, and so hurt the economy.

    The Fed exists to control
    the money supply to ensure funds are available.

    And I submit that replacing a bridge shouldn't compete with Pell Grants for funding.

    The Fed can (and should) just be required to create new money to replace the money destroyed by the storm.

    BTW, I did NOT say "The Fed should give money to the poor", which would be inflationary.

    Focus on the money/property that was helping us all on Sunday, and boom, isn't there anymore on Wednesday, and has no hope of coming back (unlike the 2008 stock market).
    Disasters are unique in permanently destroying money.

    We care about programs for the poor, and we don't want them to compete with emergency relief for scarce funds.

    BTW, I support higher taxes, including a small national sales tax, VAT taxes, and Social Security taxes on capital gains and all income.    Even if we got enough revenue coming in, I still don't think disasters should disrupt our other budget priorities.

    Indeed, this is just the germ of an idea, but merits more thought.  Thanks for thinking and comments, but don't call me dirty names like "R".

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