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Demand reflects consumption opportunities People kept receiving salaries, and unemployment benefits. So financial position and income of families was always st
by thisisnotatest1 5y ago
Demand reflects consumption opportunities
People kept receiving salaries, and unemployment benefits. So financial position and income of families was always strong
There's no precautionary savings cycle.. People engaged in financial risk taking by buying houses like never before
- ac29 5y ago> There's no precautionary savings cycle.. People engaged in financial risk taking The personal savings rate tripled in early 2020: https://fred.stlouisfed.org/series/PSAVERT https://fred.stlouisfed.org/series/PSAVERT
- giaour 5y ago> People kept receiving salaries, and unemployment benefits. So financial position and income of families was always strong I'm confused; weren't you arguing above that unemployment concerns shouldn't have motivated government spending because the drop in demand was artificial? You can't bolster that position by saying that the demand stayed strong because of unemployment benefits and salaries that went out despite people staying home; those spending categories (PPP loans and enhanced unemployment benefits) were a government subsidy to keep demand from cratering.