6 ms·

I don't think the velocity of money returns to normal. Money used to buy a single Ferrari probably circulates less than money used to buy million gallons of mil

I don't think the velocity of money returns to normal. Money used to buy a single Ferrari probably circulates less than money used to buy million gallons of milk. This should imply that for higher gdp we must tax the rich and spend on poor. American defense spending spends lesser on the poor, and the country does not even get bridges or trains in return.

EGreg 8y ago
Look, if you traced the money paid to defense contractors vs to the poor you may find that its velocity is the same after a month. Show me that it’s definitely not true. It seems quite plausible.