Free money for everyone

In free money for everyone, Ryan Cooper discusses a scheme to save America from hitting the depression. He said that wouldn’t it be crazy to get $2000 paid check in your mail on daily going bases. Cooper book, The General Theory of Employment

Cooper includes that in 2008, George W. Bush and Nancy Pelosi caused the tax rebate stimulus, in that everyone received a new fresh check paid for in their mail. Cooper claims that even Mill, Keynes, Friedman, and Bernanke might debate that we should do try the same stimulus again however, this time, much more and on continuing basis.

The whole article is based on the key idea, aggregate demand, which stated simply, “is the total amount of spending in the economy.” In the duration of economic downfall, aggregate demand slows down. He further explain that since the recent jobless employees have less money and people who try to save jobs decrease their spending in fear. Therefore, when people spend less amount of money, sales goes down, and companies have to lay off some employees, who then use even less money, and it goes on and on. Cooper believes that money goes through a circle: “my spending is your income, and your spending is my income. If we all simultaneously cut back on our spending—if aggregate demand declines—then everybody’s income declines, too.”

Cooper said economists have relied on two policies in the past, and they should continue on relying on it. He said to make sure there is enough aggregate demand, the economists should use; fiscal policy and monetary policy. Cooper explains more that the first thing is the taxes and the government spends and the second is the actions of the federal bank who are in control of money. Cooper believes these two tools have an accelerator and brake pedal. Cooper explains that the fiscal policy, “increased government spending or decreased taxation is our accelerator; the opposite, austerity, is the brake.” As for the monetary policy, Cooper believes that “the federal funds rate can act as either an accelerator or a brake.”

He ends his post by saying that we were able to save ourselves from another economic depression by using the fiscal and monetary policies to keep up the aggregate demand. So he questions why can we use those to boost our economy up again at this moment.

I believe that a lot of talents and skills will go unused, because people will not work. More money should go towards putting those people back to work rather than just giving out free in mail. This would cause inflation, once the government starts to give out money like that. The main concern is calculating the appropriate amount where we drive the economy back to it's potential.