10-12-2020, 03:12 PM
Negative interest rates are completely insane. Not only is the value of your money being destroyed by inflation, banks would charge you to keep your money in the bank.
That said, negative interest rates would make sense if applied to those with something like north of $1,000,000 in the bank. Because we have no problem with people living paycheck to paycheck spending money, but also want to encourage savings so when we have rainy days we don't need more government bailouts, and anyone with over $1,000,000 in the bank is someone who needs to be spending it, not hoarding it.
That said, negative interest rates would make sense if applied to those with something like north of $1,000,000 in the bank. Because we have no problem with people living paycheck to paycheck spending money, but also want to encourage savings so when we have rainy days we don't need more government bailouts, and anyone with over $1,000,000 in the bank is someone who needs to be spending it, not hoarding it.