tag:blogger.com,1999:blog-6948982521501107752.post3115038451023700071..comments2023-10-21T09:03:15.270-04:00Comments on Rogue Economist Rants: More on why a growing government debt always accompanies a growth in GDPRogue Economisthttp://www.blogger.com/profile/03439817966760459091noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6948982521501107752.post-58039783694221981382011-06-14T12:34:32.393-04:002011-06-14T12:34:32.393-04:00Hans, I have 3 questions to ask to check whether s...Hans, I have 3 questions to ask to check whether something is worth government spending on:<br /><br />1. Does this create productive jobs for those who would be otherwise unemployed?<br />2. Will the newly hired workers have meaningful income that they can spend back in the economy?<br />3. Is the output of the jobs adding to capacity of goods/services demanded?<br /><br />If it generates income for the unemployed, aggregate demand will go up. If it adds to demanded capacity, there will be no inflation. If the output is demanded by people, there will be no wastage.<br /><br />Iraq fails test 1 and 3. It doesn't add to productive capacity, and its output is not demand by the people.Rogue Economisthttps://www.blogger.com/profile/03439817966760459091noreply@blogger.comtag:blogger.com,1999:blog-6948982521501107752.post-72530897997601425822011-06-14T12:10:42.772-04:002011-06-14T12:10:42.772-04:00Hans --
"the holey tenets of MMT"
:)
&q...Hans --<br />"the holey tenets of MMT"<br />:)<br /><br />"The real question ... is whether the government in general, produces anything of value?"<br /><br />Sure: The government produces money.<br /><br />Not sayin they're doing a good job of it...<br /><br />ArtSThe Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-6948982521501107752.post-87154983064669819552011-06-14T09:05:34.177-04:002011-06-14T09:05:34.177-04:00The real question to be ax, is whether the governm...The real question to be ax, is whether the government in general, produces anything of value?<br /><br />Moreover, by the suggestion of the this title all that is needed is spending and debt from a waste producing entity and we have a growing and prosperous society...<br /><br />Furthermore, this would mean the eradication of recessions, would it not? <br /><br />How would the $6.6 billion dollars in cash that went missing in Iraq, be figured in the MMTers balance sheet? <br /><br />I know that one of the holey tenets of MMT is its simplicity but with such a complex issue as the national economy, the burden of proof befalls theologians...Hanshttps://www.blogger.com/profile/05183141792723754273noreply@blogger.comtag:blogger.com,1999:blog-6948982521501107752.post-61047077144554245152011-06-10T00:03:28.494-04:002011-06-10T00:03:28.494-04:00Thanks Dan.Thanks Dan.Rogue Economisthttps://www.blogger.com/profile/03439817966760459091noreply@blogger.comtag:blogger.com,1999:blog-6948982521501107752.post-1800084041433478292011-06-09T21:31:39.543-04:002011-06-09T21:31:39.543-04:00Well said again, Rogue. And I also appreciate Art...Well said again, Rogue. And I also appreciate Art's comment.<br /><br />Rogue, I read the Seeking Alpha comments (first batch only so far) and commend you for your patience there...Detroit Danhttps://www.blogger.com/profile/03718490473585220856noreply@blogger.comtag:blogger.com,1999:blog-6948982521501107752.post-70414986461295531082011-06-09T19:40:02.228-04:002011-06-09T19:40:02.228-04:00I know, Art. But then it's by these comments t...I know, Art. But then it's by these comments that we get a chance to refine and make clearer our points. <br /><br />But the comments get even more bizarre here:<br /><a href="http://seekingalpha.com/article/274115-more-on-why-government-deficits-are-healthy" rel="nofollow">SA on this follow up post</a>Rogue Economisthttps://www.blogger.com/profile/03439817966760459091noreply@blogger.comtag:blogger.com,1999:blog-6948982521501107752.post-90167416289757280212011-06-09T05:15:41.126-04:002011-06-09T05:15:41.126-04:00Wow. My initial reaction was that you are harping ...Wow. My initial reaction was that you are harping on the obvious. But I read the SA comments. It isn't so obvious, I guess.<br /><br />People seem to think that work creates money. It doesn't. Work creates output. The government creates money.<br /><br />The private sector can create money only by creating debt, by borrowing. By this process, the individual can end up debt free and full of money, but the economy as a whole cannot. To think that it can is fallacy of composition.<br /><br />Good post.<br />ArtThe Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.com