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.
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Thursday, October 29, 2009
Gov't spending/stimulus works. You gotta be blind not to see that.
Pre-stimulus Q1 GDP -6.5%
Stimulus enacted Q2 GDP -0.7% Q3 GDP +3.5%
If we had a bigger stimulus/more gov't spending, we could have grown at 9.0 percent, just like China.
The problem lies in the fact that it's hard to convince the masses of the benefits of gov't spending/stimulus.Each time this is done the public goes into hysteria as though this is some Commie style strategy on the road to the Weimar Republic.As a result politicians submit to the will of the masses and end up slashing further stimulus and spending measures.
GEE
ReplyDeleteAND IF WE GROW AT 9%, THEN PAYING OFF THE "DEBT" IS NOT IMPOSSIBLE
The problem lies in the fact that it's hard to convince the masses of the benefits of gov't spending/stimulus.Each time this is done the public goes into hysteria as though this is some Commie style strategy on the road to the Weimar Republic.As a result politicians submit to the will of the masses and end up slashing further stimulus and spending measures.
ReplyDelete