Alternatives to monetary policy

[Etch_Work]

Hi everyone,

We know how monetary policy up until now has primarily involved quantitative easing and the cutting of interest rates.

We know that interest rates are now virtually zero (negative in some places) so has nowhere to move. The purpose of lowering interest rates is to stimulate spending in the economy.

While it is not the purpose of our project to do so, in the name of helping create financial stability -  could paying people wages in real-time instead of on a monthly basis have an effect on the economy, by bringing forward spending decisions and increasing the velocity of money circulation?

Could this have any measurable impact on spending while avoiding the short sighted implications of penalising savers with interest rates?

[1715329029]

1715329029

[joebrook]

Hi everyone,

We know how monetary policy up until now has primarily involved quantitative easing and the cutting of interest rates.

We know that interest rates are now virtually zero (negative in some places) so has nowhere to move. The purpose of lowering interest rates is to stimulate spending in the economy.

While it is not the purpose of our project to do so, in the name of helping create financial stability -  could paying people wages in real-time instead of on a monthly basis have an effect on the economy, by bringing forward spending decisions and increasing the velocity of money circulation?

Could this have any measurable impact on spending while avoiding the short sighted implications of penalising savers with interest rates?

I think that is certainly going to trigger people to spend most of the time, Money people like to budget because they follow know that it will take a full month before they will receive their salary again, paying in real time will encourage spending which in turn will boom the economy

[bluefirecorp_]

That's something I was thinking about not too long ago. I think companies should pay per second of your time instead of paying you weekly, biweekly, or monthly. It'd mean less waiting for payday, and more just spending your money as you have it (for those living paycheck to paycheck).

I think people would stop working minimum wage when they see they're getting paid only a few pennies every few minutes. Maybe people would have a better idea of the value of their time.

[Etch_Work]

Spending money as you have it is something we certainly aim to do!

Your point about people being paid minimum wage is an interesting one. It could be difficult to just decide to stop working there and then (if low paid workers see their income and think trying to use the government benefits system would definitely be a negative unintended consequence!)

In which case I'd hope that having an app that pays them in real-time and helps them budget shed new light on their circumstances. The average financial intelligence of most of the population is unfortunately very low.

Do you think the service could be designed in such a way to help improve this?

[Palmerson]

That's something I was thinking about not too long ago. I think companies should pay per second of your time instead of paying you weekly, biweekly, or monthly. It'd mean less waiting for payday, and more just spending your money as you have it (for those living paycheck to paycheck).

I think people would stop working minimum wage when they see they're getting paid only a few pennies every few minutes. Maybe people would have a better idea of the value of their time.

I do not understand how it will change the situation. Rich, the owner of the plant can happily live in another country the money that he already has. You more than already paying no pay. Simple psychology. The first 100 people will die of starvation others will agree to any salary.

[tsinelas]

That's something I was thinking about not too long ago. I think companies should pay per second of your time instead of paying you weekly, biweekly, or monthly. It'd mean less waiting for payday, and more just spending your money as you have it (for those living paycheck to paycheck).

I think people would stop working minimum wage when they see they're getting paid only a few pennies every few minutes. Maybe people would have a better idea of the value of their time.

service and trade of goods are the only option i guess.