Actually the proposal made is that everyone is given an amount of money but that if you have debts you must pay them down with the money. If you don't have debts you can spend it. So there is no need to stop being fiscally responsible, you will get benefit too if it were to happen (I'm not aware of any politicians even thinking along these lines so I'm not expecting it to happen anyway this quantitative easing for the people looks more sensible to me than the current sort of QE).
It would cause some inflation but that would be largely compensated for by the cash handout.
The main entities that would suffer would be the banks as their balance sheets would shrink as people paid back their debts. The current quantitative easing process of printing money and giving it to the banks isn't really stimulating the economy just keeping asset prices up.
Read some of Steve Keen's stuff, his mathematical model of the economy seems highly plausible to me and he is one of the very few to have modeled and predicted the economic crisis well before it occurred.
It would cause some inflation but that would be largely compensated for by the cash handout.
The main entities that would suffer would be the banks as their balance sheets would shrink as people paid back their debts. The current quantitative easing process of printing money and giving it to the banks isn't really stimulating the economy just keeping asset prices up.
Read some of Steve Keen's stuff, his mathematical model of the economy seems highly plausible to me and he is one of the very few to have modeled and predicted the economic crisis well before it occurred.