< Back to Films
FA$T CA$H: Easy Credit and the Economic Crash
Fa$t Ca$h is a catchy and colorful music video that concisely explains how stimulus policies are disastrous and unsustainable. Drawing its inspiration from economist Steve Horwitz's “Parable of the Broken Traffic Lights,” MPI filmmaker Dorian Electra's Fa$t Ca$h reveals the disastrous effects that monetary easing has had on the economy. In a free economy, interest rates, much like traffic lights, coordinate the behavior of producers and consumers. But when the Federal Reserve keeps interest rates low, savings decline, consumption goes up, and investment increases all at the same time. All traffic lights simultaneously turn green, and the economy enters a credit-driven boom. Consumers live beyond their means while producers invest for the future on the basis of demand that does not exist. The euphoria of the boom is short-lived because the surge of cheap money only leads inexorably to an economic crash.