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The Thai government plans to distribute 10,000 Thai baht (approximately $260) in digital currency to all citizens aged 16 and over.
The policy is intended to stimulate the economy and help those affected by the economic downturn.
However, there are some potential drawbacks to the policy, such as inflation, speculation, and ineffectiveness.
The government should carefully consider these drawbacks before implementing the policy and should also implement other measures to address the overall economic situation.
Summary
The Thai government is planning to give all citizens a small amount of digital currency, but there are some potential risks associated with the policy.
Why it's Interesting/Important
The Thai government's 10,000 baht digital money handout is a short-term measure to stimulate the economy by increasing domestic consumption. However, there are concerns about the long-term implications of the policy, particularly its impact on government finances and investment.
The government will need to borrow the 548 billion baht projected cost of the gift. Thailand's existing relatively high state debt will rise as a result of this. Due to competition for borrowed cash between the government and the private sector, the handout may also discourage private investment. Therefore, the handout may eventually result in a slower rate of economic growth.
Certain experts contend that the government ought to concentrate on measures that encourage long-term economic expansion, like funding for infrastructure, education, and R&D. Additionally, they contend that the government ought to depend less on debt to fund fiscal stimulus.
In summary, the Thai government's 10,000 baht digital money handout is a short-term measure with potential long-term consequences. It is important to carefully consider the pros and cons of the policy before making a final judgment.
Reference
https :// nida. ac. th/digital-money-of-10000-baht-and-the-sustainability-of-thai-economic-growth/