43 sats \ 2 replies \ @xz 9 Apr freebie \ on: Are you in the UK and overwhelmed by debt? Personal_Finance
No. Similar to the Bidenomic manoeuvre of student debt 'forgiveness' this scheme (scam) is just a tactic with the direct intended consequences of boosting voter appeal.
To my mind, fudging numbers directing attention to how a government has helped in some way and using those stats in campaigns to appeal directly to the large number of people that have ended up in this bad financial situation, this makes any continuation of the same government seem more palletable to that group which would have been the most critical.
I'd love to know. From a very simple 2+2 math angle, it would be easy to calculate that those debts being frozen, extinguished or written off are not finding a new home, in the way that they would be if debts were actually repayed. That money would find its way into some industry, be possibly reinvested or saved. When stuff is bought on credit and debts are written off, there is no other outcome other than more money chasing fewer goods. We know what happens when there is more money in circulation chasing fewer goods.
I don't think there's any way that such a claim can be made one way of the other. I guess that once upon a time there might have been some kind of posturing, but as everyone can see, there's just so much internal chicanery that it makes little sense to compare. My 2 pennies.
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Enjoy the thought process but not sure of the gov intent. Thanks for posting it.
Perhaps extinguishing debts is intentional monetary policy to stimulate inflation. Or perhaps it's to throw more fuel on the fire of socializing losses and rewarding irresponsible borrowers. In either way, it doesn't seem helpful to me.