Quote:
Originally Posted by ratbastid
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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There is a multiplier. Any dollar introduced into the economy if from government or any other source has a multiplier. However, this fails to describe what happens next. The question that begs an answer - can you create something from nothing? It is not like "poof" the government can introduce a new dollar with real economic value into the economy. My point is that they can print another dollar, but it won't have real economic value unless it is backed by something real.