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You're advocating for demand-side stimulus by giving everyone money to spend on goods without increasing the productive capacity of the economy. This led to sta
by jackcosgrove 11y ago
You're advocating for demand-side stimulus by giving everyone money to spend on goods without increasing the productive capacity of the economy. This led to stagflation in the USA in the 1970s. There are other examples such as Venezuela today where simply giving out money does not improve welfare if the supply of goods and services does not grow as well.