Friday, July 31, 2009
Looking for Logic
I'm trying like hell to understand what Biden meant by, "We have to keep spending in order to avoid bankruptcy." And, while, yes, it's clearly been an inordinate undertaking, I think that I may have finally come up with something (not that I necessarily agree with it, mind you, but it is in fact logical from Biden's perspective)........................................................................In Biden's mind (and, yes, in the minds of many liberals), the government needs to spend money in order to stimulate the economy. And, yes, folks, once that economy IS stimulated, not only does IT grow, but revenue to the government does as well. Keynesian economics 101, in other words.............................................................................So, no, maybe Biden wasn't totally out of his mind when he uttered this. It was an actual perspective that he was espousing. Whether or not you agree with the perspective, that's another story. It didn't work for Japan in the 90s. It's even debatable whether it worked for Roosevelt in the 30s. But it is, as I said, a perspective.
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1 comment:
Are you really asking someone to channel Joe for you?
Govt, like it or not is a major consumer in our system.
When other parts of the economy fail govt increases spending to keep the arteries open and prevent fatal collapse.
This isn't new it's thousands of years old.
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