3.4. Monetary stimulus
Third option is to finance transfers through additional printing of money, quantitative easing. State, central bank issues further currency into circulation and gives it to the state (commercial banks) to spend. Devilish thought.
But it is also one of the means how to finance state transfers which can bring profits creation without backward cycles of recession which are arising during repayments of loans and allows persisting of profits without them having to be taxed as is the case with transfers financed through taxes.
It is not necessary to raise taxes to complement buying power from taxed profits. There is no increasing indebtedness of the state, which will become a serious problem sooner or later.
There are no economical cycles to fight against as there is no diminishing of sales stemming from repayments of personal loans. Profit creation is possible, as buying power consisting from wages and additional resources (transfers financed from monetary stimulus) is adequate to realize all planned sales and consequently profits.
This profit is of the same volume as the size of monetary stimulus.
However, such model of profit making has its serious faults as well:
Profit is created only from monetary stimulus, redistributed through transfers. Every new profit requires new money printing and so the profit itself is just illusionary, it is only new inflationary money whose purchasing power is lower and lower. If companies and individuals would try to realize all profits they would recognize that inflation would follow. The only reason why there is no serious inflation is that multimillionaires and billionaires really do not need and don´t spend their fortunes at once. The wealth is conserved at bank accounts, its buying power untested and trust maintains its value.