In theory, negative rates would stimulate spending. You get more spending money today vs waiting to spend it later. However, most American households are already paycheck to paycheck. The high income people who are savers are savvy enough to buy better investments than let money sit in a savings account.
All true. But I think the broader implication is that asset prices, after an initial jump, might also come down as much of this is begin driven by population decline. Within a couple decades it will be declining in the developing world as well. Doesn’t bode well for real estate long term. Equities might be safer as there is potential for gains in efficiency and productivity.
US population will not decline in 20 years.
438 million in 2050