Comments on: Don’t Believe the Bad Faith Economics! http://www.peelingonion.com/2009/01/bad-faith-economics#utm_source=feed&utm_medium=feed&utm_campaign=feed Jayson Vucovich's Periodic Insights Wed, 24 Mar 2010 21:36:49 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Does It Work? • Blog Archive • Peeling Onion http://www.peelingonion.com/2009/01/bad-faith-economics/comment-page-1#comment-34 Does It Work? • Blog Archive • Peeling Onion Thu, 29 Jan 2009 23:04:43 +0000 http://www.peelingonion.com/?p=48#comment-34 [...] Ultimately, we want to get the biggest bang for the buck and the way that is measured is by the associated multiplier:  The government spends a dollar on building a road, so a firm gets a new dollar.  That firm hires two extra people and pays them each $0.40 from that dollar.  Those people each have $0.40 extra from that dollar and use it to spend another $0.20 they wouldn’t have otherwise spent.  That spending goes to another firm and the process repeats.  Ultimately, we’ve bought more than a dollar’s worth of stimulus with our dollar.  It works similarly with tax cuts.  But which one has a higher multiplier?  Direct Government Spending! (See the previous post on this subject.) [...] [...] Ultimately, we want to get the biggest bang for the buck and the way that is measured is by the associated multiplier:  The government spends a dollar on building a road, so a firm gets a new dollar.  That firm hires two extra people and pays them each $0.40 from that dollar.  Those people each have $0.40 extra from that dollar and use it to spend another $0.20 they wouldn’t have otherwise spent.  That spending goes to another firm and the process repeats.  Ultimately, we’ve bought more than a dollar’s worth of stimulus with our dollar.  It works similarly with tax cuts.  But which one has a higher multiplier?  Direct Government Spending! (See the previous post on this subject.) [...]

]]> By: andrew http://www.peelingonion.com/2009/01/bad-faith-economics/comment-page-1#comment-32 andrew Tue, 27 Jan 2009 15:49:40 +0000 http://www.peelingonion.com/?p=48#comment-32 I'll have to go read the whole article... I don't know if I can trust your non-ideologized summary of summaries. Did you hear the Democracy Now interview with David Korten yesterday? Really interesting stuff.... I’ll have to go read the whole article… I don’t know if I can trust your non-ideologized summary of summaries.

Did you hear the Democracy Now interview with David Korten yesterday? Really interesting stuff….

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