Budget Problems And Solutions.

Discussion in 'Economics' started by morganist, Mar 12, 2020.

  1. morganist

    morganist Guest

    You are claiming international government business operations will not increase economic growth. But if these operations can increase production and efficiencies then it will lead to economic growth, so you must have the opinion it cannot be increased or the governmental business operations could lead to growth or make money.
     
    #31     Mar 18, 2020
  2. piezoe

    piezoe

    I made no such claim. What do you mean by "government business" ? To paraphrase what I wrote it was that in an open economy that trades with other nations the flow of aggregate savings is equal to the government's deficit plus investment plus net exports. So far as I am aware that is correct keeping in mind the algebraic sign of net exports for a country that runs a trade deficit is negative and for one that runs a trade surplus it's positive.

    You were concerned that I had ignored the role of international trade and simply limited my discussion to closed economies. I then pointed out to you that to keep matters as simple as possible I simply assumed a perfect trade balance, in which case there is no difference in the relationship between open and closed economies, in this specific regard only of course, because if there is perfect trade balance , net exports is zero. I then in a subsequent post modified the relationship to specifically include net exports to make it clear I am not limiting our discussion to closed economies, which in any case would be rather ridiculous.
     
    Last edited: Mar 18, 2020
    #32     Mar 18, 2020
  3. morganist

    morganist Guest

    I gave a full explanation of the products that I have suggested in the original post of this thread, I will link to it again see below.

    http://morganisteconomics.blogspot.com/2020/03/budget-problems-and-solutions.html
     
    #33     Mar 18, 2020