> No, because they would still have Milton Freidman's famous helicopter money drop. Previously, this took the form of quantitative easing.
QE was not the same as the "helicopter drop". The helicopter drop (HD) is much closer to basic income (BI), except that HD might be a one-time thing, whereas BI is ongoing.
QE is creating money to buy bonds. This raises the price of bonds, and injects money into the system. But where does it inject the money? To everyone? No, only to those who currently hold bonds - that is, to the wealthy, and to financial institutions. HD and BI, by contrast, give the money to everyone.
QE didn't do much to solve the problem of inadequate demand. HD and/or BI may do better. They may do it at the price of increased inflation, true. But under the current circumstances, the Fed would welcome a bit more inflation...
QE was not the same as the "helicopter drop". The helicopter drop (HD) is much closer to basic income (BI), except that HD might be a one-time thing, whereas BI is ongoing.
QE is creating money to buy bonds. This raises the price of bonds, and injects money into the system. But where does it inject the money? To everyone? No, only to those who currently hold bonds - that is, to the wealthy, and to financial institutions. HD and BI, by contrast, give the money to everyone.
QE didn't do much to solve the problem of inadequate demand. HD and/or BI may do better. They may do it at the price of increased inflation, true. But under the current circumstances, the Fed would welcome a bit more inflation...