Students Bailout
Out of context: Reply #57
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- eryx0
KwesiJ
If you give someone home or a car you giving them something that they can sell for cash right away. This messes up the economy, you have an assets that you can convert to cash. Then there is Taxes, upkeep, insurance and all sorts of sub-industries that are tied to these specific markets. If the price of a house or car fluctuates to much it effects these sub-industries negatively.
If you pay off peoples education you don't have a tangible asset that will end up back in the market. You can't sell your education back to someone for a profit or a loss. By this token it is not worth anything to anyone else except in what you can provide in the form or services. You will not get all this money in a lump some but you will have a larger net income over time. Slowly you will be able to afford more.
It is a stable way to stimulate the market!