Representative John Yarmuth (D-Ky.) is Chairman of the House Budget Committee, which is playing a key role in crafting the $3.5 trillion reconciliation bill currently being debated in Congress. During a speech to the Louisville, Ky. Rotary Club in June, he explained why he believes the government can borrow and spend the trillions under discussion without any negative impact on the economy.…Not only would not have a negative impact, it would have a positive impact on people's lives by investing public funds created by the state in public resources, thereby increasing productivity and raising the living standard. Of course, the devil is in the details and spending for the sake of spending y is not guaranteed to produce positive outcomes. Rather, government spending needs to be tightly targeted toward public purpose in light of both contemporary needs and long-term distributed prosperity.
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"...it would have a positive impact on people's lives by investing public funds created by the state in public resources, therby increasing productivity and raising the living standard."
ReplyDeleteindeed.
Every fall it's the same thing with you Americans: "debt ceiling" and "government default."
We, the rest of the world, watch in bemusement :(
It also needs to be targeted at the low end, and the state mustn't pay market prices or they'll generate inflation.
ReplyDeleteGovernment spending sets the price level!
“ Of course, the devil is in the details and spending for the sake of spending y is not guaranteed to produce positive outcomes.”
ReplyDeleteThat’s why Bannon/MAGA is saying ‘let’s see the plan’
"Not only would not have a negative impact, it would have a positive impact on people's lives"
ReplyDeleteAnd that's why we can't have it. Big business prefers a precarious labor force to profits. It's easier to exploit people when they're barely treading water.