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Old 02-19-2009, 01:07 PM   #218 (permalink)
ratbastid
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Quote:
Originally Posted by aceventura3 View Post
Sure there is a multiplier, but that can be offset by inflation or increased taxes in the future. The government creates money, but they don't. the government spends money that was taxed, so they spend a dollar taken from someone. No net multiplier. The government uses deficit spending, this is paid back with interest in the form of inflation or higher future taxes - short-term multiplier then it gets reversed plus interest.
If you think this is a response to what I said about the principle of the Keynesian multiplier, but I assert you missed the boat on what it is. Which is fine with me, I don't 100% buy it myself, and I'm not looking for you to argue for or against it in particular. But if what I said was, "Baseball is a game played on a diamond with a ball and a bat," then what you said was, "I like gummy bears." Just so you know.
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