j.r. leonard

This accords with a lot of things I’ve heard — basically, stimulus policy tries to goose the economy by increasing the number of dollars in people’s pockets and hoping they’ll spend them. But investors know there’s nothing good to spend on, so they sit on tons of money.

Result: we’re not richer, but we are more unequal. The financial elite gain not in consumption but in relative security. The extra “money” never corresponded to extra goods; it is fake; it is a measure of “low risk of eviction” more than a measure of “having nice things”

I haven’t checked stats for myself so I don’t know if this is our current state, but it seems intuitive that it is a thing that *could* happen.

I don’t think you can tell the full story w/o considering the safe asset shortage. Unconventional monetary policy supports market for Treasuries (safe assets) which is also supports government deficits spending. Big question is how much work fiscal stimulus should be doing now