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Well, it's not really a fallacy if you account for political impediments to just giving people money. In other words, war can compensate for a "demand shortage
by FeepingCreature 4y ago
Well, it's not really a fallacy if you account for political impediments to just giving people money.
In other words, war can compensate for a "demand shortage," notwithstanding that in a sensibly run economy, such a thing should never be expected to exist.
- eru 4y agoIt's pretty easy to print money.. (Yet, sometimes like around 2008 countries still fail.)
- marcosdumay 4y agoWhat is not easy is getting that money on the hands of the people, instead of a few rich folks.
- eru 4y agoIf the rich folks spend it, it gets into the hands of other people. If the rich folks keep it, then it doesn't contribute to anything (eg not to inflation), and you can just print more. In fact, the latter is much better: you can have your central bank gradually buy up the rest of the world without any inflation nor devaluation of your currency.
- FeepingCreature 4y agoIf the rich folk spend it, it gets in the hands of other people exactly insomuch as the other people are required to make something that the rich people want. That is increasingly not a given. And of course, it also burns some portion of those people's economic output on Rich People Interests. If the rich people "X" it and it gets in the hands of other people without burning those people's economic output on RPIs, then X is called "donating", not "spending". And in that case, we might as well cut out the middleman, cough UBI cough.