Posted by mchalesarmy on 9/25/2012 12:38:00 PM (view original):
How would we be at full employment? People aren't working, they just got gifted a million bucks.
People would spend a bunch of money, which should help a bit, but to make the leap from a "gift of money" to "full employment" is utterly ridiculous.
There would be a massive increase in demand for all sorts of products. How many five star dinners would you eat if you suddenly had a million dollars in cash? New car? New house? Or maybe just a kitchen remodel?
Someone would still have to wait tables, sell cars, and build cabinets and filling those positions may be difficult if everyone has a million dollars, so that example is extreme, but in general, a helicopter drop like we had in 2008 (I think everyone under a certain income got something like $600) stimulates an economy when lack of demand is the biggest problem (like it is now).
9/25/2012 12:58 PM (edited)