Americans hoarding cash doing more harm to their economy?

[mersal]

Governments doesn't care much about their citizen then why they should care about their economy.If they are spending their money means how they will survive without jobs for the next few months.All the burden goes to the government alone because they collected enough tax for centuries but they can't even take care their people for few months.

[1715593074]

1715593074

[1715593074]

1715593074

[1715593074]

1715593074

[1715593074]

1715593074

[1715593074]

1715593074

[figmentofmyass]

The view of saving in this situation is good, so it is better to save money in a bank with the assumption that it still earns interest and is relatively safe. But when the economy stagnates and leads to recession, depression, and the great depression, things will get more complicated and the effects will be very detrimental.

The existence of a bank interest system ultimately causes the money that could have been an economic lubricant in the real sector to accumulate and accumulate in some people, this is what makes the reluctance to invest which ultimately impacts the economic stagnation due to lack of lubricant.

bank interest doesn't yield shit, and now trump is pushing for negative rates:



short of that, they are already doing everything they can to stimulate spending---lowering rates near zero, injecting trillions of dollars in liquidity, stimulus/relief payments. and still, people aren't spending. some examples:

Florida Retail Reopening Fails To Draw Consumers

Retail Survey: US Consumers Bargain Hunting

Why Consumers Aren’t In A Rush To Reopen The Economy

something to consider is that direct-to-consumer services (like amazon) are growing fast at the expense of the brick and mortar economy. i dunno how physical retailers are gonna convince consumers to return. and that's a huge chunk of the economy.

[Negotiation]

Americans are doing more damage to their economy by raising cash because they are not so interested in their economy. The government is stopping their trade with other countries He is managing cash only for his own interest. This is further damaging their economy and the common people are living a helpless life I think it is going to be resolved very soon In the case of trade, many buyers develop transactions with sellers.

[Darker45]

The country's economy is largely founded upon consumerism. Therefore, there is always a little truth in that. However, the ordinary citizens should not take all the blame, if at all. How could they continue spending all the time when they have no salaries to expect in the coming weeks and months? How could they even spend the way they normally do when the shops are closed? They are actually trapped in a situation where they most probably want to spend but prudence tells them to limit it to the basics.

The ordinary citizens are the main victims here. It is odd pointing at them as the culprit.

[Wexnident]

Isn't it just an empty argument? Arguing over how one spends his money? It's like arguing to other people why are they living as humans. It isn't their fault at this point in time, since they have their own issues and problems to consider just as the government has with regards to the economy. They are ultimately, just like what most have said, the victims in this problem. Besides, America is just pretty much putting up temporary solutions, they aren't really attacking it head-on and creating a remedy for their current economy, at least, a proper one that has worked well so far. Best bet to remedy this would be to eliminate the factor that caused people to stop spending, which is the virus at this point, but that may also prove to be too difficult with how they are acting out on it.

[billykannithi]

The people is scaring, I think so. Many signals indicator the world crisis is coming soon. So, many people hold your money, saving to survival

[davis196]

Americans can hoard their cash for as long as they want and nobody can tell them what to do with their money.Nobody can force them to spend money.Cutting costs and saving money is smart decision during crisis,you don't know what will happen and when you are about to get fired by your boss.
Credit card debt is the worst form of slavery and getting into more debt,just to revive the economy is plain stupid.The stupid fiat economists should find a new way to save the USA from the corona depression.

[sheenshane]

Hoarding cash, of course, I'll do the same though I'm from a different country(not from America) we also experience the same I'll not spend my savings to help my economy instead I will think of my stomach first before our government and our economy. Yes, I know what you are thinking of and probably sound selfish but everyone will do the same especially to those who are the sole provider of their family besides if I'll spend my money aside from our necessities where else I can spend it where all establishments are closed. Somehow, I understand that it is really necessary for us to spend in order for the economy to recover, in this time of uncertainty we really need to prioritize ourselves first and not the economic status of our country.

[CarnagexD]

I think hoarding of cash is just normal on this quarantine and pandemic outbreak because some of the people do not have time and are not allowed to come out to their house and spend all of their money to buy a lot of things. Today there are a lot of restriction about hoarding a lot of items most issue today is the tissue there are a lot of people bought a lot of tissue and hoard this and some of them are selling it which is wrong and cause too of having hoarding their cash because they cannot buy those things they want because of those people and I think there is no reason for hoarding cash today it is just useless if you are getting infected always make sure you are safe and complete to have medicine and vitamins that hoarding your money.

[Questat]

They are just getting smart as cash is the last option they can use to survive, the credit card company will be affected a lot but that is given since when there is a crisis, it's not expected that people can pay their debts on time or some may even lose their job and can't pay at all, but since they have the balance to spend, then they will not think twice of spending it.

Though the government are providing some help or support, it wouldn't be still enough as they are heavily affected and a lot of people will certain lose job once the pandemic continues.

[Reid]

I forgot what country it is.
But the event happened like the President states to the people that they need to spend more than keeping their cash.

There is also a solution for this.
Save it in a bank.
Cash will still circulate that way. While you still have numbers in banks.

[mindrust]

This is FIAT's bug.

The central banks are trying to lower the value of paper money by printing them excessively.

By this logic, you would think that people would dump FIAT and get "real" stuff instead but guess what... that is not always happening.

Instead,

People buy more FIAT and drive the demand even higher because It is getting cheaper!

*This won't work if your currency isn't a reserve currency like USD or GBP. Don't try this with your shitlocalcoin"

[arayde]

People are not believe in banks, thats good.
But without money banks could go to bankruptcy and this may hurt economy so much

[Kong Hey Pakboy]

I think the Americans and every people around the world is not hoarding cash. The only reason they are spending their cash because they need to buy all of their necessities and feed their families during the pandemic of corona virus, since most of them temporarily don't have any jobs to earn money.

[Yatsan]

This is FIAT's bug.

The central banks are trying to lower the value of paper money by printing them excessively.

By this logic, you would think that people would dump FIAT and get "real" stuff instead but guess what... that is not always happening.

Instead,

People buy more FIAT and drive the demand even higher because It is getting cheaper!

*This won't work if your currency isn't a reserve currency like USD or GBP. Don't try this with your shitlocalcoin"

Yeah, government are trying to deliberately causing inflation by printing more fiat so people would really be spending in scare of losing their monetary value. This is a deliberate attack from the government so they can control the flow of cash even in lower terms and most people will think that it is normal because we are facing a problem but it's not. But today with pandemic? I think it is quite natural for people to keep their cash in their pocket coz they got nothing to spend but only their foods.

[Freeesta]

I do not think that citizens' money can stimulate the economy. The well-being of people should be important for the country now, many citizens have become unemployed, they even barely have enough money for food. How will these people stimulate the economy?

[fiulpro]

Not have just them but it is also the banks and multinational companies, they have brought shares in the foreign market and are now trying to get some profit. See no one is going to sell it in low, the government of every nation is pleading people to sell them. But they themselves are in a big loss more Over after a while when the situation recovers , there will be huge benefits for the people who actually brought at the time of Pandemic.
I do think on a personal scale they are not experiencing any short term problems but they are degrading their economy themselves without even realizing.

[coolbaughandrew]

The Fed has printed billions of dollar and promised us stimulus checks to increase the supply of money in circulation. The government suppose where the money supply expands, people would not simply wish to hold the extra money in idle money balances. People start to spend their money, it helps the economy to stay alive.

[Lorence.xD]

I do not think that citizens' money can stimulate the economy. The well-being of people should be important for the country now, many citizens have become unemployed, they even barely have enough money for food. How will these people stimulate the economy?

The circulation of money in the economy is vital to prevent the inflation of prices, this the same principle that happens with the people saving money in the piggy bank, I agree that these is the best measure an individual can think of but if I were to think in a broader perspective, this will only hurt the economy in the long run and the people will suffer much more, I can't blame the people for doing these though because this pandemic surely made a lot of uncertainty that made a lot of people face bleak and miserable fate. I hope that the US government has a way to tip the scales to prevent the full collapse of their economy.

[Harlot]

You cannot force a person to spend their own savings/money just to save their country's economy what they'll be doing is they'll be spending their money and buy unnecessary things which doesn't show any kind of solution to the problem at all. It's not the citizens fault with lockdowns in place I don't see why at this point they would be encourage to spend something if it's not safe to got outside. Aside from that the government is the one who needs to have the solution here from decreasing interests rates as well as businesses accepting thaty they also need to make their goods and services attractive in terms of lowering their prices. The citizens of the United States are in a pretty good position here if this thing is really serious as they will see a lot of prices going down not only stocks but also goods and services.