5 ms·
> 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 governme
by 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 agoThat'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 agoSince I don't take the sacrament of Keynesian multipliers, it will not go anywhere.