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 Posted: Thu Dec 01, 2011 4:26 pm Post subject: McDonald's Outsmarts Politicians-Stimulative Spending |
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http://www.blogger.com/comment.g?blogID=28997633&postID=996272584225178420
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PeakTrader said...
Yes, and Wall Street outsmarts people like Barney Frank all the time, and yet they keep trying.
It reminds me of the Looney Tunes Roadrunner-Coyote cartoons.
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PeakTrader said...
Ron, Krugman believes growth can be stimulated by taking money away from those with a low marginal propensity to consume (MPC) and giving that money to those with a high MPC, ceteris paribus.
Similarly, Krugman believes, growth can be stimulated by taking money away from the future (borrowing) and spending that money today, ceteris paribus.
That may work under certain economic conditions. However, I stated before, a large tax cut (paid by spending cuts) and heavy deregulation are what the economy needs now.
And the shift of money from low MPC to high MPC and from the future to the present is temporary, until the economy rebounds.
The article is wrong, e.g. Krugman is not taking water from one side of the lake and pouring it in on the other side.
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http://www.blogger.com/comment.g?blogID=28997633&postID=7952291003595338104 |
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