This article, in the New Statesman, criticizes the ineffectiveness of quantitative easing [QE] in the UK and how it has benefited the banking sector and the richest. It suggest the amount spent so far of 375bn could have be ‘given instead as around £6,000 per man, woman and child in the UK. So why not electronically add this to the current accounts of every member of the public? Why not give the QE money directly to ordinary people to spend, save or pay off their debts?’ In 2009, Australia actually did something similar when the global crisis hit, giving one-off cash payments to low- and middle- income groups, particularly pensioners and cash constrained families (ISSA, 2010). This helped soften the impact of the crisis and generated significant positive multiplier effects.
Mehdi Hasan, “We could fix our economy by giving every man, woman and child £6,000 in cash”. New Statesman, October 25, 2013.
For more information about the 2009 Australian payments see also:
ISSA, “Australia’s successful income-led response to the crisis”. ISSA, 2010.
