A good summary of present macro situation

Discussion in 'Economics' started by richardyu301, Nov 28, 2008.

  1. Daal

    Daal

    The kenesyan argument of expanding government spending during a contraction has flaws.
    If US GDP growth is kept positive and employment up due massive production of typewriter machines that what was the 'good' done to society?None, the quality of the spending is not often discussed, which is interesting given that on net gov spending does more harm than good.
    In the end the government package becames merely an accounting trick to make the numbers look less bad. If they care so much for the unemployed then give them money directly

    Fiscal stimulus needs to be done through a tax cut even if most of it will be saved, decreasing the leverage of US households is not a bad thing
     
    #11     Nov 30, 2008