Quote:
Originally Posted by jfman
That's not how quantitative easing works. It may be the case that the money does need removed at a later date however there's no guarantee it would. You are another one confusing macroeconomics with your household budget.
Even if the money did have to removed from money supply - there's strong support for the lockdown. Would people be willing to may minimal amounts of increased tax or VAT over the next 5-10 years to literally support themselves now for a mere few months? A move that would protect employees, protect small businesses and leave the economy better placed to bounce back?
Of course they would. However nobody wants to raise the question of tax reforms when the human price of underfunded public services is so prevalent on their TV.
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I would put money on there not being any tax rises when it reopens. The demand for things is going to be very low and they will be wanted to get people spending again. It is not going to be as simple as borrowing money to pay back.