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But what if it's mostly domestic spending? The money spent for salaries flows in whatever those individuals need/desire to spend (groceries, barber shop, you na
by ithkuil 9y ago
But what if it's mostly domestic spending?
The money spent for salaries flows in whatever those individuals need/desire to spend (groceries, barber shop, you name it).
The part of the trillion dollar injected in any economic activity in a closed system stays in that system.
(The part of that sum that is used to buy imports is another thing, although I guess it's far more complicated to properly account for)
Honestly, every time I think about this my mind just melts; I'll be really glad if somebody can clearly explain where is the catch.