danielpalos
Diamond Member
- Banned
- #281
not necessarily; investments in the general welfare should make a "profit" for the People under any form of Capitalism.Of course that results in inflation, which devalues the economy as a whole. It does not represent true wealth.It may be a fallacy of composition.How does that relate to the reality that any money the government wants to spend must first be taken from productive people and businesses?that is like saying that "accumulating capital" for a proverbial rainy day, is not Capitalist.Of course they are, but first they have to be taken from those who would use it to expand the economy, thus making unemployment benefits less necessary. Essentially, you have a vicious cycle going. Some people are out of a job, we take money away from those who create jobs, more people are out of a job, we take more money away from job creators, and the cycle continues.Unemployment benefits aren't spent in the economy?
The general government of the Union has recourse to a Commerce Clause and an official Mint that can almost as if by magic, create (fiat) money out of "thin air".