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I smell a heavy dose of MMT here. First, the government might not have issue borrowing infinitely, but deficit spending/printing cash from thin air leads to in
by churchill 3y ago
I smell a heavy dose of MMT here.
First, the government might not have issue borrowing infinitely, but deficit spending/printing cash from thin air leads to inflation. And considering how 'beautiful' that past couple of months have been, I wouldn't dismiss its impact on livelihood.
Secondly, the government might distribute money into the economy, but it's always done inefficiently. That's where we get $20k trash cans [0] and $28 million spent on camouflage uniforms that don't blend in (for use in Afghanistan).
Arguing that government spending is mostly good because it gets money into people's hands is just the broken window fallacy at work - that cash could have been used for more productive investments in the private sector.
Thirdly, I wouldn't trust the ROI figures published by a government agency, especially since the US government has a 'use it or lose it' approach to budget allocation. They have every motivation to just make up figures to channel more cash their way.