QP!
Verified User
Again, earmarking money just frees up money that used to be earmarked for that.
Earlier I explained the fungibility of money, it's in this thread. Keep up. I can go through it again, but really... it's there for posterity.
Ah, heck... If I have $6 I am saving for ear medicine and fish food for my goldfish, then my mommy promises to give me $6 to pay for those things on Sunday. I then take my $6 and spend it today on a 1980s priced nickel bag and a McDouble, the only reason I thought i had money for weed and junk food was because mommy promised me $6 for medicine and fish food.
Now, that's how fungibility works and how "earmarking" promised money still allows them to spend on other things.
Are we up to pace now? Good.
Now, money in an account they cannot spend doesn't help them, but the money they were promised to get, that was even transferred to an escrow account and rules changed so the banks were sure the US would not punish them for doing this, that changes everything.
And if American university students with student debt, have earmarked money to pay that debt but Biden announces a new policy aimed at cancelling that debt, MANY WILL INSTANTLY put that money to other uses. It does not matter if that money actually gets budgeted or delivered or the debt cancelled.
Just as when Trump and Pompeo change policy on giving Iran $6B they will start spending elsewhere.
If you were not so simple minded you would understand that aspect of human nature.