Printing money is fine since the Fed does it responsibly and uses it to achieve highly beneficial outcomes that aid the economy.
And I don't know who you think is getting "free money". The Fed creates it and then uses it to buy bonds. It then gives most of the excess earnings from those bonds to the US Treasury.
The big question regarding hysterical claims about printing money, etc is: it's been happening for over a decade in multiple large advanced economies, why hasn't there been a disaster? This time is different, right?
Would the GFC count? Technically it wasn't a system shattering event (more like system shuddering), but boom and bust cycles certainly do seem to be growing.
The GFC does not count. The GFC was caused by (1) bad underwriting policies (banks, AIG) that generated a huge debt overhang and (2) bad and poorly understood dependencies between banks that led to breakdown of the normal flows of assets between the banks.
None of this was in any way dependent on or catalyzed by government money creation. The same dynamic cause the beginning of the great depression in 1929-30 due to excessive margin lending and then runs on banks. At that time the US was on the gold standard.
> And I don't know who you think is getting "free money". The Fed creates it and then uses it to buy bonds. It then gives most of the excess earnings from those bonds to the US Treasury.
To add to this point, the amount of income the treasury gets from the Fed is tiny compared to the amount it gets from taxation.
And I don't know who you think is getting "free money". The Fed creates it and then uses it to buy bonds. It then gives most of the excess earnings from those bonds to the US Treasury.
The big question regarding hysterical claims about printing money, etc is: it's been happening for over a decade in multiple large advanced economies, why hasn't there been a disaster? This time is different, right?