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Comment by ozim | Hacker News Reader

Sorry on the nitpicking - we will have to dig into our pockets even if government does something. Government does not have magic money it is also “our money”.

One would say government would levy fees on big companies but then companies will charge customers more.

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Of course yes, but most people seem to be waiting to let the government mop up the problems and aren't spending anything themselves that isn't advertised as a guaranteed investment like solar panels where the electricity company has to pay you for the service of dissipating your excess energy (bluntly put). We need to realise that, at least until the government starts spending big (because it's basically too late for the perfect outcome already, the best we can do is mitigate even bigger disasters), the only other option is do it ourselves.

Governments issue money, so yes they kind of do have magic money. Certainly a different access to money than private entities.

When they issue more money - money in my pocket lose value, still same thing.

This is not true. That only happens if the money supply exceeds the productive capacity of the economy.

If the government didn’t issue any money and economies continued growing (which wouldn’t happen because you need slack in the money supply to allow for growth) there would be deflation. So the government could issue money in a growing economy and still see deflation, until the ratio hits a tipping point.

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