George Will commented on Sunday Morning that the Fed is printing money and buying 70% of the new Treasury Bond issues and this will end in summer. He didn't say what any of this meant allowing anybody who even got what he was saying to jump to their own conclusions. First the Fed isn't buying new issues but buying them on the open market allowing the rich to bail on their Treasury holdings at full price. Secondly pumping a cool trillion into the markets does stimulate the economy at least at the Wall Street level. This is great for the rich but does little for the rest of us but drive up food and fuel.
If they really wanted to stimulate the economy they would increase demand. Seventy percent of demand comes from consumers and half of consumers have little or no discretionary income and increasing food and fuel costs only makes that worse.
It would take little more than the stroke of a pen to increase the demand by increasing consumer income. They could increase the pay for lower income government workers (teachers, nurses and so on) and increase the minimum wage (adjusted for inflation it should be around $14/hour). Increase Social Security payments, unemployment benefits, food stamps and welfare. All of these people would spend the money immediately and boost demand. You would need to increase tariffs to keep the money from draining away to China and crack down on trans-national corporate tax avoidance schemes. Tax revenue would increase dramatically with the revitalized economy, coupled with a crack down on the rich you would run a huge surplus.
Not surprisingly the Republicans want to do just the opposite. Drastically cut pay for government workers, slash pension payments, eliminate unemployment benefits, cut food stamps, do away with welfare, cut the minimum wage to zero, bring back child labor and on and on. And they constantly clamor for more free trade and tax cuts for the rich.
Lets be clear, the people who come up with these talking points aren't stupid. They aren't just trying to play to their base by appealing to their shortsighted jealously, fear, hate and bigotry, they are deliberately killing the economy. The crisis this will cause cannot be over emphasized. They intend to use the crisis to grab power once and for all.