Biotech Values

[poorgradstudent]

OT:

Hell. Just give every family a check for $50,000 to spend on stuff. That outta take care of it. Talk about goosing the economy.

Well, I'm not trying to be flippant with my suggestion, and we can quibble over the amount and the relative injustice of it all.

However, I don't think you'll get the same result if you just give people $50K. You run the risk that they save it (doesn't help spur demand) or spend it on something dumb. I think you force them to put it into a debt that in turn lowers their monthly bill in a recurring fashion. That way you'll get a ramping increase in demand that will plateau and be sustained. I think that the demand would slowly ramp because early on, people would be more inclined to save a larger percentage of their newfound monthly surplus.

I concede that this crazy idea will create some inflationary pressure. However, from my rudimentary reading, a little inflationary pressure in this current climate won't be all bad.