Gotti demands MMT for ‘OK Boomer’

This is the right idea but for the wrong folks, at The Australian:

One of the most important statistics calculated by Foreseechange is its “willingness to spend” data. This shows that retirees are the most willing to spend, followed by people in full time work without mortgage repayments. Retirees been savaged by lower interest rates and those saving for a house have fallen further behind. In reducing interest rates, we are attacking those most willing to lift their spending. Those with large mortgages simply save more when interest rates fall so there is little benefit to retail sales.

Foreseechange says the way to boost spending is to provide help to those willing to spend and the easiest way is to assist aged pensioners. They will spend the money and there will be a direct injection into retail spending. Secondly, financial institutions should be instructed to pay double the interest paid since 2014 into personal accounts. Treasury would finance this, or it could be a form of unconventional monetary policy financed by the Reserve Bank.

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