Banks are creating money. This is one of the key reasons why banks are so important for the economy. This facilitates the famous boom-bust cycles. This means that banks and central banks, in partnership with politicians, can favor certain in the economy. At the expense of the rest of society.
According to popular economic thinking a recession, as we are heading to right now, is explained as the market demand not being capable of creating employment to keep everyone working. This is why politicians love stimulus. They keep printing money to get the economy going. But is this the sustainable method to go for in society?
Imagine that we would look at the economy from the perspective of the individual or company than we get something different. The changes in demand are creating opportunities for new employment.
The stimulus is very destructive. It delays the natural move towards the future. It delays the opportunity for new and sustainable employment. This is important due to the situation we are in right now. Around the world are we seeing how all is being stimulated? But where is the money going? Who benefits and is it good for society?
Normally prices are going down. When something new is being invented then we see a really expensive price. Which, slowly on, goes down. The goods become common goods. This is the natural way things go. But with the stimulus, this is not being done most efficiently.