An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
Greatness!! Sadly, most of my debt fearing friends only respond with " If you would just make that G equal zero then the C will get infinitely bigger." What? Are you serious? Talking about funny math. I guess "fiscally conservative" math is different than the math I learned in school. Keep preach 'en!
JM:Your debt-fearing friends would be wrong of course because they'd be invoking the "crowding out" theory and this just doesn't happen. Ask your friends how come gov't spending went from $36 billion in 1946 to $4 trillion today (an 11,000% increase) yet we still use less of our industrial capacity, there are 5 million unsold homes, 3 million unsold autos, 12 million people out of work, 43 million people without health care when we have the services to provide it to them, half of all families in the nation that cannot send their kids to college when there is place for them, etc, etc. Rather than crowd out, we have an abundance of wealth-producing capital, both physical and human, and we choose not to use it because of a horribly irrational ideology.
Very clever. You're a natural - nice job!
Very entertaining.Question... the 7000% growth, what is it adjusted for inflation?-- "crowding out" --What would have happened if the dollars the government took on as debt in the last 8 to 10 years went directly into the private sector?
Yes it is adjusted for inflation.That money did go into the economy. The better question to ask is, "What would our economy and standard of living look like if the government didn't spend that money?"
Mike,You did a great job in showing off your intellectual insufficiency.Your understanding of economics is surpassed only by John Maynard Keyenes. Did you graduae from high school at all?
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