3 ms·

There's always work to be done in digging a deeper hole?

• tunesmith 14y ago
  I understand you're joking, but just to point out - digging a deeper hole probably wouldn't be much of a multiplier, while other public spending efforts could have much higher multipliers. On the other hand, if the deeper hold leads to a valuable public resource...
  • sageikosa 14y ago
    > if a government debt-spends on something, some of the effects will be able to continue on their own power and contribute to economic growth after the government spending stops That's what investing capital is supposed to do, only it should be done with private funds and private risk. If the growth were likely to continue, capital would seek out those enterprises without debt-spending.
    • tunesmith 14y ago
      That's not always possible for all sources of multipliers. (Roads, dams, etc.) Although I recognize we're devolving into one of the common argument patterns that never get anywhere. :)
      • sageikosa 14y ago
        Since I don't take the sacrament of Keynesian multipliers, it will not go anywhere.