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0 pointscolinmhayes3y ago0 comments

Increasing the money supply causes inflation. Rich people don't just put their money under their mattress. They invest it which means it's being given to other people who use it to buy things.

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rvieira3y ago

I understand why that might cause inflation. The projected cost is £55b, is this really enough to put the country in an inflationary meltdown?

IMHO the problem is that none of these measures actually guarantee (or even promote) economic growth and the realisation that the UK has economic illiterate leaders it's what's freaking the markets.

psd13y ago

To be more precise, the market has realised that the economic illiteracy of our leaders is worse than previously feared.

And I use "leaders" with scornful irony

klyrs3y ago

> They invest it which means it's being given to other people who use it to buy things.

Now do real estate investing.

colinmhayesOP3y ago

Real estate investing means either paying people to build things for you, or paying people for something that's already built. Obviously building things causes inflation as you compete for commodities required to build, but buying already built real estate also means the seller now has money that they invest and that will eventually get consumed too.

mbrodersen3y ago

Or the invested money will simply drive up share prices without giving anybody else money to buy things.

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