[Tricks]

stratos stratos:

Wouldn't a debt jubilee cause many companies to go broke and close? This would make a lot of people unemployed? Putting them out of the economic recovery that would supposedly take place.

Not against it but trying to figure out how it would actually work.

It would also cause an economic boom as suddenly the disposable income skyrockets overnight.

[Public_Domain]

[herbie]

You already know how that would work out. Insurance companies, banks wold just raise your fees, landlords your rents, retailers their prices. Even local gov't would hike your taxes and make sure if the gov't gave everyone $2000 a month they'd take $2500 of it.
Anyone getting 1/2 a month's car insurance back because it's parked while they isolate?

[stratos]

Tricks Tricks:

stratos stratos:

Wouldn't a debt jubilee cause many companies to go broke and close? This would make a lot of people unemployed? Putting them out of the economic recovery that would supposedly take place.

Not against it but trying to figure out how it would actually work.

It would also cause an economic boom as suddenly the disposable income skyrockets overnight.

I understand that but there would be thousands if not 10's of thousands laid off or unemployed. That loss of income does not give them the economic boom. Just have to weigh out which one is the better for the whole I guess.

[DrCaleb]

stratos stratos:

Tricks Tricks:

stratos stratos:

Wouldn't a debt jubilee cause many companies to go broke and close? This would make a lot of people unemployed? Putting them out of the economic recovery that would supposedly take place.

Not against it but trying to figure out how it would actually work.

It would also cause an economic boom as suddenly the disposable income skyrockets overnight.

I understand that but there would be thousands if not 10's of thousands laid off or unemployed. That loss of income does not give them the economic boom. Just have to weigh out which one is the better for the whole I guess.

I don't think there would be layoffs because of forgiven debt. Think about it, it's mostly automated systems maintaining things like credit card debt. And the systems will still be needed as people rack up more credit card debt. Who would get laid off?

[stratos]

$1:

I don't think there would be layoffs because of forgiven debt. Think about it, it's mostly automated systems maintaining things like credit card debt. And the systems will still be needed as people rack up more credit card debt. Who would get laid off?

Business that you owe the money to. Such as BestBuy, Walmart, the Banks, you name it someone owes it money. Now you say no one owes any one money. How do those companies PAY their employees, how do business restock their supplies. There is no debt to them so they are not getting paid for the products you already purchased. Oh yeah the bank paid them. So the bank is not getting that money back. Banks close, YOUR Bank closes how do you now get your money from your employer. You get a check, where do you cash it.

[stratos]

I'm no against a Jubilee. I just think there needs to be a lot of safe guards put in. Some of these safe guards will not be popular. People were hear how businesses and banks are getting propped up to stay open. People will say, look the rich people are getting more than us.

[BartSimpson]

Scape Scape:

Expect more helicopter drops to come. The problem is it's hard to restart and economy on lockdown.

True, but this action helps to mitigate the damage.

[DrCaleb]

stratos stratos:

$1:

I don't think there would be layoffs because of forgiven debt. Think about it, it's mostly automated systems maintaining things like credit card debt. And the systems will still be needed as people rack up more credit card debt. Who would get laid off?

Business that you owe the money to. Such as BestBuy, Walmart, the Banks, you name it someone owes it money. Now you say no one owes any one money. How do those companies PAY their employees, how do business restock their supplies. There is no debt to them so they are not getting paid for the products you already purchased. Oh yeah the bank paid them. So the bank is not getting that money back. Banks close, YOUR Bank closes how do you now get your money from your employer. You get a check, where do you cash it.

When you use a credit card to buy things, the credit card company takes on the debt, and pays the retailer. They charge the retailer a percent cut to do this, and then charge the customer in such a way that if you carry a balance you will end up paying the credit card company many times the value of the original purchase.

So the retailer is paid, and in most cases, the credit card company is paid back many times the original value. If the original debt is cancelled (on a long term debt), is anyone really out anything?

Now, with all this talk of a Jubilee, no one has said how this cancelling of debt will work. Will is just evaporate? Will the government cover the debt in some way? Will it apply to mortgages or car payments? Student loans? No one knows, if such a thing is even being discussed.

[Strutz]

herbie herbie:

You already know how that would work out. Insurance companies, banks wold just raise your fees, landlords your rents, retailers their prices. Even local gov't would hike your taxes and make sure if the gov't gave everyone $2000 a month they'd take $2500 of it.
Anyone getting 1/2 a month's car insurance back because it's parked while they isolate?

Good point about car insurance. How many now will re-insure for "pleasure only" while they are out of work?

[herbie]

Great pleasure in the one that hasn't moved for ten days........