TPS Posted July 14, 2011 Share Posted July 14, 2011 Apparently you didn't understand the original argument to begin with. The assertion was that the demand created by government would be created by the private sector because the money the government uses to create that demand is first confiscated from people and businesses who would otherwise use that money, and would therefore have created roughly the same amount of demand. The artificial demand is the spending of money that was not taxed, but rather borrowed, which in the short term creates demand, but it also creates debt, and you see where that's gotten us. That's why I used borrowing with the example, to stay away from the first point--even though it appears you realize government has a slightly bigger impact by using the word "roughly." Your argument would carry a little more weight if you focused on what government buys. Government Investment in infrastructure improves overall economic performance, as does support for education and research. Transfer payments on the other hand,.... Link to comment Share on other sites More sharing options...
3rdnlng Posted July 15, 2011 Share Posted July 15, 2011 Gee, I wish I was a smart as you. After that, I bet you do. Link to comment Share on other sites More sharing options...
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