The Problem With Helicopter Money Is That It Is Inefficient

The term helicopter money refers to unconventional methods used to get money into the hands of people that will rapidly put it to use. Whether to buy products or pay bills it is often seen as a way to kick start a stalled economy in need of a boost. 

This is seen as an alternative to quantitative easing and is considered by some a faster way to add liquidity into the economy. It could be argued that over the years such policies have proven to be inefficient and poorly targeted. While helicopter money may accomplish a certain goal such as supporting a market, it is poorly targeted and seldom addresses the root problems in a financial system or economy. 

The failure of central banks across the world to use their power to push governments to undertake reforms is coming home to haunt us. Rather than assuming the role of enforcer and protector of our fiat currency system central banks across the world have joined with governments in what I call the "Financial-Political Complex." This is comprised of the organizations, comprised of authorities, politicians, and bureaucrats that want increased power and influence. These people benefit a great deal by unleashing huge sums of fiat currency upon the masses and ignoring the long-term ramifications of their actions upon the financial system. It should not bring comfort to the average man that these unholy forces have joined together in such a union.

A huge problem with simply sending out big checks to a population with little experience handling large sums of money is that they don't know how to handle it. While some big income earners and politicians in Washington may not think so, for a family of three with an annual income of $30,000 two checks from the government totaling $6,000 is an incredibly big deal. It is equal to 20% of their income and in truth, the windfall most likely doesn't end there. Often other goodies are thrown their way such as rental assistance and a slew of other programs aimed at paying their bills.

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