In these uncertain times Analysts have struck a nerve by claiming that American’s are destroying their economy by hoarding cash, and they feel that the American citizens should spend their cash in order to revive their country’s economy. In my personal opinion I don’t think that American citizens are wrong to hoard their cash, due to uncertainty surrounding their jobs.
This can be related to every country as no country is spared from these situation, people will not be spending the money as the job market is uncertain and the economist are expecting a recession much worse than the recession we had in 2008 and with that uncertainty on the rise it is better to hoard money than spending it and it will have an affect on the entire market. 
Topic: Americans hoarding cash doing more harm to their economy? - page 2. (Read 484 times)
Sounds incorrect, so long as cash is stored in a bank then its part of the fractional reserve system and lent out on many multiples into the economy. Hence there no contraction from people making sure they have enough money to pay the bills next week, month or even a year forward because that cash is on a company balance sheet and being used.
Taking cash out as notes and holding it physically I guess would have more of an effect possibly, or the idea of holding gold over FIAT but the whole deal is flawed from the concept of constant inflation to agitate growth via monetary velocity. Its modern economics maybe but its based off constant debt which will collapse eventually.
Capitalism is capital with the people and each person or family making sure they can survive and be productive, money has its highest use as security. People saving as a negative is nonsense outside of politics.
Taking cash out as notes and holding it physically I guess would have more of an effect possibly, or the idea of holding gold over FIAT but the whole deal is flawed from the concept of constant inflation to agitate growth via monetary velocity. Its modern economics maybe but its based off constant debt which will collapse eventually.
Capitalism is capital with the people and each person or family making sure they can survive and be productive, money has its highest use as security. People saving as a negative is nonsense outside of politics.
An interesting interpretation, only right now, the "bad" ones who saved up money in case of any incidents were just protected, but the "good" ones who spent all their money right away were in a very difficult situation. And while the former are still holding on, the latter are not very good.
I think the Americans and every people around the world is not hoarding cash.
how did you know man . what bout the rishes people . for sure they have a stock of fresh cash in thier vaults but except to poorer one because they already buy thier cash with stock of food that they will be eating for a week or two in order to save .Quote
The only reason they are spending their cash because they need to buy all of their necessities and feed their families during the pandemic of corona virus, since most of them temporarily don't have any jobs to earn money.
rish people already have alot of food stocks with or without jobs but poor people will have nothing more to eat without a job . with the times that there are quarantine , poor people are affected the most .hoarding cash does harm yes because its simillar to hoarding food supplies and other needs which can harm on the economy too . when they hoard for example , some people can hardly get the item . same goes to fiat because its printed limited only
Countries get trillions of dollars in taxes all around, states get that much taxes as well, everyone is basically getting taxes from you, so if that is the case why is there no more help from the government without printing money.
Instead of spending 700 billion dollars on military every year and beating the next 26 country combined, why doesn't America only spend 20 billion dollars like a sane country on military instead and use the rest to put it aside somewhere or pay their debts off and simply help the countrymen to live a better life? That is only the military we are talking about, there are tons more other stuff that is not needed as well. Basically Americans owe the economy nothing, economy never really was for the Americans, it was for the rich, so let the rich take the fall on this one.
Instead of spending 700 billion dollars on military every year and beating the next 26 country combined, why doesn't America only spend 20 billion dollars like a sane country on military instead and use the rest to put it aside somewhere or pay their debts off and simply help the countrymen to live a better life? That is only the military we are talking about, there are tons more other stuff that is not needed as well. Basically Americans owe the economy nothing, economy never really was for the Americans, it was for the rich, so let the rich take the fall on this one.
You cannot force a person to spend their own savings/money just to save their country's economy what they'll be doing is they'll be spending their money and buy unnecessary things which doesn't show any kind of solution to the problem at all. It's not the citizens fault with lockdowns in place I don't see why at this point they would be encourage to spend something if it's not safe to got outside. Aside from that the government is the one who needs to have the solution here from decreasing interests rates as well as businesses accepting thaty they also need to make their goods and services attractive in terms of lowering their prices. The citizens of the United States are in a pretty good position here if this thing is really serious as they will see a lot of prices going down not only stocks but also goods and services.
I do not think that citizens' money can stimulate the economy. The well-being of people should be important for the country now, many citizens have become unemployed, they even barely have enough money for food. How will these people stimulate the economy?
The circulation of money in the economy is vital to prevent the inflation of prices, this the same principle that happens with the people saving money in the piggy bank, I agree that these is the best measure an individual can think of but if I were to think in a broader perspective, this will only hurt the economy in the long run and the people will suffer much more, I can't blame the people for doing these though because this pandemic surely made a lot of uncertainty that made a lot of people face bleak and miserable fate. I hope that the US government has a way to tip the scales to prevent the full collapse of their economy.
The Fed has printed billions of dollar and promised us stimulus checks to increase the supply of money in circulation. The government suppose where the money supply expands, people would not simply wish to hold the extra money in idle money balances. People start to spend their money, it helps the economy to stay alive.
Not have just them but it is also the banks and multinational companies, they have brought shares in the foreign market and are now trying to get some profit. See no one is going to sell it in low, the government of every nation is pleading people to sell them. But they themselves are in a big loss more Over after a while when the situation recovers , there will be huge benefits for the people who actually brought at the time of Pandemic.
I do think on a personal scale they are not experiencing any short term problems but they are degrading their economy themselves without even realizing.
I do think on a personal scale they are not experiencing any short term problems but they are degrading their economy themselves without even realizing.
I do not think that citizens' money can stimulate the economy. The well-being of people should be important for the country now, many citizens have become unemployed, they even barely have enough money for food. How will these people stimulate the economy?
This is FIAT's bug.
The central banks are trying to lower the value of paper money by printing them excessively.
By this logic, you would think that people would dump FIAT and get "real" stuff instead but guess what... that is not always happening.
Instead,
People buy more FIAT and drive the demand even higher because It is getting cheaper!
*This won't work if your currency isn't a reserve currency like USD or GBP. Don't try this with your shitlocalcoin"
Yeah, government are trying to deliberately causing inflation by printing more fiat so people would really be spending in scare of losing their monetary value. This is a deliberate attack from the government so they can control the flow of cash even in lower terms and most people will think that it is normal because we are facing a problem but it's not. But today with pandemic? I think it is quite natural for people to keep their cash in their pocket coz they got nothing to spend but only their foods. The central banks are trying to lower the value of paper money by printing them excessively.
By this logic, you would think that people would dump FIAT and get "real" stuff instead but guess what... that is not always happening.
Instead,
People buy more FIAT and drive the demand even higher because It is getting cheaper!
*This won't work if your currency isn't a reserve currency like USD or GBP. Don't try this with your shitlocalcoin"
I think the Americans and every people around the world is not hoarding cash. The only reason they are spending their cash because they need to buy all of their necessities and feed their families during the pandemic of corona virus, since most of them temporarily don't have any jobs to earn money.
People are not believe in banks, thats good.
But without money banks could go to bankruptcy and this may hurt economy so much
But without money banks could go to bankruptcy and this may hurt economy so much
This is FIAT's bug.
The central banks are trying to lower the value of paper money by printing them excessively.
By this logic, you would think that people would dump FIAT and get "real" stuff instead but guess what... that is not always happening.
Instead,
People buy more FIAT and drive the demand even higher because It is getting cheaper!
*This won't work if your currency isn't a reserve currency like USD or GBP. Don't try this with your shitlocalcoin"
The central banks are trying to lower the value of paper money by printing them excessively.
By this logic, you would think that people would dump FIAT and get "real" stuff instead but guess what... that is not always happening.
Instead,
People buy more FIAT and drive the demand even higher because It is getting cheaper!
*This won't work if your currency isn't a reserve currency like USD or GBP. Don't try this with your shitlocalcoin"
I forgot what country it is.
But the event happened like the President states to the people that they need to spend more than keeping their cash.
There is also a solution for this.
Save it in a bank.
Cash will still circulate that way. While you still have numbers in banks.
But the event happened like the President states to the people that they need to spend more than keeping their cash.
There is also a solution for this.
Save it in a bank.
Cash will still circulate that way. While you still have numbers in banks.
They are just getting smart as cash is the last option they can use to survive, the credit card company will be affected a lot but that is given since when there is a crisis, it's not expected that people can pay their debts on time or some may even lose their job and can't pay at all, but since they have the balance to spend, then they will not think twice of spending it.
Though the government are providing some help or support, it wouldn't be still enough as they are heavily affected and a lot of people will certain lose job once the pandemic continues.
Though the government are providing some help or support, it wouldn't be still enough as they are heavily affected and a lot of people will certain lose job once the pandemic continues.
I think hoarding of cash is just normal on this quarantine and pandemic outbreak because some of the people do not have time and are not allowed to come out to their house and spend all of their money to buy a lot of things. Today there are a lot of restriction about hoarding a lot of items most issue today is the tissue there are a lot of people bought a lot of tissue and hoard this and some of them are selling it which is wrong and cause too of having hoarding their cash because they cannot buy those things they want because of those people and I think there is no reason for hoarding cash today it is just useless if you are getting infected always make sure you are safe and complete to have medicine and vitamins that hoarding your money.
Hoarding cash, of course, I'll do the same though I'm from a different country(not from America) we also experience the same I'll not spend my savings to help my economy instead I will think of my stomach first before our government and our economy. Yes, I know what you are thinking of and probably sound selfish but everyone will do the same especially to those who are the sole provider of their family besides if I'll spend my money aside from our necessities where else I can spend it where all establishments are closed. Somehow, I understand that it is really necessary for us to spend in order for the economy to recover, in this time of uncertainty we really need to prioritize ourselves first and not the economic status of our country.
Americans can hoard their cash for as long as they want and nobody can tell them what to do with their money.Nobody can force them to spend money.Cutting costs and saving money is smart decision during crisis,you don't know what will happen and when you are about to get fired by your boss.
Credit card debt is the worst form of slavery and getting into more debt,just to revive the economy is plain stupid.The stupid fiat economists should find a new way to save the USA from the corona depression.
Credit card debt is the worst form of slavery and getting into more debt,just to revive the economy is plain stupid.The stupid fiat economists should find a new way to save the USA from the corona depression.
The people is scaring, I think so. Many signals indicator the world crisis is coming soon. So, many people hold your money, saving to survival
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