tag:blogger.com,1999:blog-2761684730989137546.post7428038056845576277..comments2024-03-28T20:28:01.733-04:00Comments on Mike Norman Economics: Bill Mitchell — A lying government pushing economy towards recession and greater inequalitymike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2761684730989137546.post-62825138456694655752016-12-20T17:52:29.674-05:002016-12-20T17:52:29.674-05:00Thanks for responding, Matt. Really appreciate it....Thanks for responding, Matt. Really appreciate it. It was a sincere question. But right now I am so full of office eggnog I can barely type. ;-) Think I might be out of commish for the rest of the night. Holiday cheer.MRWhttps://www.blogger.com/profile/13878920695841363553noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-4065032179115993902016-12-20T17:04:22.520-05:002016-12-20T17:04:22.520-05:00He's is trying to use Accounting (which is ex ...He's is trying to use Accounting (which is ex post) to make causal inferences with the word 'generate' here...<br /><br />So there is a problem with Time Domain here...<br /><br />Hypo govt could start with $10k to every household on the 1st of the month 25% taxable income...<br /><br />Households turn that over 11 times during the month while accruing income tax payable of 25% for each turn and on the 30th pay $9700 taxes leaving the govt with a "deficit!" of $300 for the month and every household realizing $38k of income for the month ... Then on the 1st govt pays each household another $10k ... <br /><br />So income would be $38k for the month and the "deficit!" would be $300 for the month (10,000 - 9700) <br /><br />so how does the govt sector "deficit!" of 300 'generate' (present tense) the $38k of income if you use a one month accounting period like the govt typically does to determine what "the deficit!" was for the previous month (past tense)?<br /><br />Its really the original $10k that the govt spent that month that 'generated' the income.... and the taxes and any resultant "deficit!" (non-govt savings) is a function of that leading govt spending of 10k not the 300 of 'deficit' <br /><br />So like Brazil saying they are going to stick to a 3% deficit could work as long as govt spent enough FIRST and nobody saved very much and you could tune the system to operate efficiently....Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-4825603637750417112016-12-20T15:03:01.550-05:002016-12-20T15:03:01.550-05:00This is sloppy...
How so?<i><b>This is sloppy...</b></i><br /><br />How so?MRWhttps://www.blogger.com/profile/13878920695841363553noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-65620483968756012522016-12-20T11:45:55.693-05:002016-12-20T11:45:55.693-05:00"The sectoral balances equation is interprete..."The sectoral balances equation is interpreted as meaning that government sector deficits (G – T > 0) and current account surpluses (CAD > 0) generate national income and net financial assets for the private domestic sector."<br /><br />This is sloppy...Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.com