Mish Shedlock: “‘Free Money’ experiments are underway in several places: Canada, California, and Finland .. The alleged studies are all fatally flawed because they do not scale. It’s one thing to give a few hundred people or a few thousand people free money, but it’s another thing to scale the experiment across an entire nation .. Economic illiterates have latched on to the free money scheme. If you pay people to do nothing, there will be masses of people doing nothing and getting paid for doing nothing .. The idea that the government needs to redistribute money to make things affordable is ridiculous in both theory and practice .. Thousands of affordable home programs, tuition programs, and Obamacare prove the ridiculousness of the concept .. If the Fed and governments would just get the hell out of the way, prices would naturally find the right level .. But no! The Fed does not want prices to go down, and when prices go up, economic illiterates scream for ‘living wages’, attacking a symptom of the problem .. The problem is not insufficient wages. The problem is fractional reserve lending coupled with a Fed hell-bent on creating inflation in a technologically deflationary world .. Misguided minimum wages hikes, public unions, and political corruption all exacerbate the problem .. Economically illiterate writers bemoan deflation, as do most economists, central banks, and academia. The final irony in this ridiculous mix is central bank policies stimulate the massive wealth inequality all of the above rail about .. It would behoove ‘living wage’ advocates to consider the possibility the real problem is central bank sponsored inflation, not a failure of government to provide a ‘living wage’ to those doing nothing.”
LINK HERE to the commentary

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