TC_Triple3
Member
- Mar 4, 2015
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Let's see... if we actually did print a $million and hand it out to everyone, what would be the impact? A surge in spending, for sure. Enough to sustain an entire economy? maybe not because of the inclination to save what isn't needed. And even if everyone spent the entire amount, we'd just have to do it again later because thee same rules would apply - consistent spending over a long term drives the economy. What would be better would be to increase gainful employment.
Now, dear Ed, we come to the point you should listen carefully to because I think you might have forgotten this. Let's say that the government appropriated a huge block of cash (perhaps by borrowing against the future as we usually do) and then contracted to repair roads and bridges. This would create jobs which puts considerably less than a million in a lot of hands, but the cash earned also fuels spending - from the lowly local diner to luxury car manufacturers, everyone benefits from the influx of money. They themselves can now afford to spend more which causes prosperity to propagate far away from the targeted construction projects. The increase in available funds is even felt at the federal level in the form of more revenues obtained through the current tax base and allows it to actually pay down the debt incurred (although we both know that some conservative commie is just going to redirect those funds to another pet project like a race track or a bank office building). Increased spending can also trigger higher inflation rates, meaning that the value of the dollar can drop a little. This moves into the international part of our economy and makes US dollars less desirable to foreign companies, which in turn reduces our trade imbalance problems a little. This isn't socialist, or communist, or even libturd thinking. It's just plain old capitalistic thinking applied to the entire scope of the economy rather than what's in YOUR wallet.
Now tell ME that you have the wit to understand Econ 101.
Jobs would be created either way, but the jobs that are created by handing out wads of cash aren't as obvious as the jobs created by a public works project. Taxes will also be collected either way. Handing out wads of cash would cause an immediate spike in consumer spending whereas public works projects would be longer term, benefit a smaller group, and wouldn't register so much as a blip on the GDP radar. Either way the effects are the same, the only difference is the pace with which they occur.