2 ms·
Money multipliers are a pretty well understood idea. US gov spends a dollar, it gets used to buy something, the seller uses it to buy something else, etc. GDP i
by ivankirigin 19y ago
Money multipliers are a pretty well understood idea. US gov spends a dollar, it gets used to buy something, the seller uses it to buy something else, etc. GDP is the value of goods created, and a single dollar used multiple times can be counted many times.
It's a bit naive to make things are so simple. A great example is a huge toy doll, 100 stories tall. Imagine the engineering milestones that would be reached by such a project. Imagine the huge number of people employed!
Those are distracting from the fact we don't need huge toy doll.
Also, you'll never hear a politician point out that the dollar spent has been taxed, and would have not incurred the dead weight loss of the taxation process had it just been spent and re-spent.
- eru 19y agoWell said. Reminds me of the broken window fallacy (http://jim.com/econ/chap02p1.html http://jim.com/econ/chap02p1.html).