Debt-burdened or cash-starved businesses do not want more credit, they need non-credit capital: P Chidambaram

Some elementary truths:

Credit guarantee is not credit

Credit is more debt.

No banker will lend to a debt-ridden business

Debt-burdened or cash-starved businesses do not want more credit, they need non-credit capital

More supply does not mean more demand (consumption)

On the contrary, more demand (consumption) will trigger more supply

Demand (consumption) will not grow in an economy where jobs have been lost and incomes/wages have been reduced

The answer to this crisis is to put money in the hands of the people, especially the poor and lower middle classes

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