1. Federal min wage would be a good place to start.
2. Uh, the same as now? Just because you work for the government doesn't mean you earn min eage. I'm pretty sure Generals make more than $15k per year.
3. People that have jobs spend money in the economy to buy things. Private sector economy benefits from this.
4. You would have to do tasks to get paid. It's a job if you want it. Not forced. The idea is to curb unemployment.
US Defense spending is a US employment program. I really wish we would drop the pretense and just make it a full employment jobs program. Anyone that wants to work should be able to get a job.
The private sector can then get employees by paying above the minimum wage offered by the defense department job program.
I'm not talking about the economy failing. I'm talking prices. What do you think happens to asset prices when there are only sellers (everyone with wealth has to sell). You think poor people will have enough cash to keep prices up?
When Elon sold in his latest Tesla round the stock tanked 30% over a couple months. Repeat for Bezos, Gates, etc.
Imagine step 2 to realize the insanity. That household likely doesn't have disposable income that is greater than 25% of their unrealized cap gains, so what do they do?
1. Hope they can get a low interest loan to pay their taxes?
Or
2. Sell some assets. Think about what will happen to your 401k balance as wealthy people all over the US are forced to sell stocks. It will not be pretty.
This is correct. Interest payments go into bank accounts. Some of that money gets spent into the economy, some stays and gets reinvested into more treasuries.
There's a reason real GDP growth is higher than it's usually been, money is being injected into the economy via interest payments.
Even though the annual government deficit is almost 7% of GDP, essentially injecting stimulus into the economy, wall st analysts are convinced high interest rates will cause a recession. CEOs have responded by slashing forecasts and employees to appease wall st.
Because we all know corporations were keeping prices and profits low before COVID because it's good for PR. After COVID they said screw the PR let's be greedy now.
In other news, French authorities have decided that Hollywood movies should be banned for displays of murder, which is against French law. The "contracts" of the actors is immaterial as murder is illegal in France.