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Tag Archives: spending
Fed Set on Debt Monetization
The Federal Reserve begins to monetize government debt, hoping to combat deflation. Continue reading
Posted in Current Events
Tagged debt, Federal, Government, monetization, Reserve, spending
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DeLong on Public Expenditure and Hayek
Brad DeLong writes on freshwater and Austrian macro, baffled at why he still needs to explain why public spending is pertinent in current economic conditions. He never paused to think that maybe his own case is unconvincing. Continue reading
Posted in Theory
Tagged Austrian, Brad, DeLong, Government, Hayek, Samuelson, spending, Unemployment
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Gross Domestic Product as a Poor Indicator
My challenge would be that GDP is a poor indicator of economic growth or prosperity. Apart from the usual criticism that it overplays consumption and does not stress investment enough, a spike in government spending (or an increase in ‘G’) can also cause a spike in GDP. Let’s remember that Hugo Chavez spends a great deal of money on public works project, but with falling real investment in Venezuela we’ve seen the general impoverishment of the country. Continue reading
Obama a Drunken Sailor?
From one drunken sailor to another. Continue reading
Bernanke Risks Stirring the Pot
Ben Bernanke supports low interest-rates, but not government spending. Continue reading
On Keynesianism
Within the context of the Great Depression, does Keynesian economics hold water? Continue reading
Posted in History, Theory
Tagged Depression, Government, Great, inflation, Keynes, money, spending
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Dan Mitchell on Stimulus Spending
Dan Mitchell’s educational video on stimulus spending, and why a second stimulus would be disastrous. Continue reading
Roosevelt’s Recession of 1937
Roosevelt’s Recession of 1937, which saw the unraveling of supposed economic growth in the prior years, is oftentimes used as an historical example of what occurs when government decreases spending levels or the central bank fails to continue credit expansion. The use of this event to exemplify these things is disingenuous. More accurate lessons can be drawn, which show that only the market can fix itself. Continue reading
European Wealth
Comparisons between Europe and the United States are difficult to make, because different European countries have different standards of livings, different purchasing powers, et cetera. These comparisons are nearly useless. Continue reading
Marijuana, Taxes and Expenditure
While marijuana legalization is a good thing, the tax revenue and the incentive to spend it is not. Continue reading →