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  •  That would be wasteful. (2+ / 0-)
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    HeyMikey, Phoebe Loosinhouse
    Hard to recall now, but before he was chair of the Fed, Ben Bernanke was known as "Helicopter Ben" because he said that in a liquidity trap (our current problem) the government should, if necessary, print money and throw it from helicopters.  
    Too much of the money would fall into inaccessable places and never get picked up and spent, so it would just rot.  How about if the Federal Government loaned $10,000 to every tax return filer, issuable as an income tax refund on every tax return filed for 2013?  (IOW, in the spring of 2014.)  All poor and many middle-income people would spend the money quickly, stimulating the heck out of the economy.  (This idea isn't original to me; someone on here, whose name I can't recall, suggested it.)

    The interest rate on the loan could be pegged to some specific type of Federal bond, and repayment would be required at the rate of 10% per year starting in 2017 and be collected with the income tax return.  The only stumbling block is what to do about people who die before finishing repayment.  Maybe require it to be repaid with the Federal estate tax return, so if there isn't enough of an "estate" to file a return, the heirs get to keep the money.

    "My country, right or wrong; if right, to be kept right; and if wrong, to be set right." -- Sen Carl Schurz 1872

    by Calamity Jean on Thu Aug 15, 2013 at 12:17:08 PM PDT

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