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>> That is The Pot. > It's not a pot, its a stream; using the available flow isn't draining it WRT PAYGO style government spending this is perfectly accurate.
by throwawaygh 5y ago
>> That is The Pot.
> It's not a pot, its a stream; using the available flow isn't draining it
WRT PAYGO style government spending this is perfectly accurate.
WRT debt-financed spending it's closer to correct than "The Pot" but still off (spending now doesn't drain the stream, but does reduce future flow for a fixed period of time).
WRT a massive war it distracts from the enormous second and third order effects.
- dragonwriter 5y agoYou are confusing the fiction of the fisc (a finite purse for government spending which must ve filled by raising revenue or issuing debt to enable spending) in a fiat-money economy with the reality of underlying production. The mechanism by which government accounts for its direction of the use of some portion of productive capacity, and particularly the choice of one or another game to simulate the operation of pre-fiat-money government financing (where the fisc was a real thing, if even then not the whole of the ability of the government to direct the use of productive capacity), does not alter the effect the use of resources has on productive capacity. It may affect the artificial future constraints on the government so long as it chooses to play the same (or any) game to maintain the fiction of the fisc, but that's not a real constraint even on the government, much less the actual productive capacity of the economy.