The social acceptance of economic policies

Demand-stimulus economic policies have changed over time in OECD countries: From 2002 to 2008, the y consisted in stimulating private sector borrowing, particularly by households, thanks to a monetary policy that was already expansionary. This policy met with strong social acceptance, as it facilitated consumption and housing purchases; From 2008 to 2019, fiscal deficits and public debt were used to increase social income transfers to households, combined with very low interest rates. This policy also garnered strong social acceptance, as it boosted household income; Since the COVID crisis, policymakers have turned to helicopter money or public income transfers financed by money creation. To be sure, there are still public income transfers, but households have been quick to see the effects of this policy, which will lead to its social rejection : zero returns on savings and therefore lower incomes for pensioners; sharp rise in wealth inequality. The social acceptance of this third type of economic policy will certainly be lower than the previous two policies.