Any government outlay causes somebody somewhere to receive some income they didn’t have previously in return for supplying some good or service. They then pay some tax, and decide how much of that income to spend on other goods and services in the economy and how much to save for a rainy day. That process then continues with the money bouncing around between people causing transactions.
We can represent the initital government outlay with the following definitions.…Understanding issuance and taxation.
Neil Wilson
3 comments:
Show it to the morons who think we can run surpluses and everybody can still save...
(They won't understand it anyway....)
Math is not a strong suit for those "critics." They look at this stuff as "if you magically keep printing money, you'll have tons of inflation." Emphasis on the magic part. They're the same people who try to call this stuff a scam and "supply-side econ."
They also don't seem to understand the concepts of correlation vs. causation.
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