When will we hear the end of "fiscal cliff?"

[Rex E.]

Originally Posted by Boreas

Okay, go ahead.

I think you can find what you want by researching the "multiplier effect". The idea, basically, is that a dollar spent generates activity throughout the economy.

John

BAH!...it's far easier to throw out bullshit one liners one after another after another with zero substance or plan to back them up.

Research be damned!

[bobabode]

It's just ODS, Rex. Pete's got it bad...

[ebacon]

Originally Posted by Boreas

Okay, go ahead.

I think you can find what you want by researching the "multiplier effect". The idea, basically, is that a dollar spent generates activity throughout the economy.

John

Exactly. The "marginal propensity to consume" (MPC) is another term to study after digesting the multiplier effect.

http://en.wikipedia.org/wiki/Margina...ity_to_consume

[piece-itpete]

Alright, the gauntlet:

IF government spending creates wealth, why don't we spend more? So far all I've heard is keynesian talking poiints.

And a followup - if government spending does indeed create wealth, what's the current issues with the economy, considering just how much the government is spending?

Pete

[Boreas]

Originally Posted by piece-itpete

Alright, the gauntlet:

IF government spending creates wealth, why don't we spend more? So far all I've heard is keynesian talking poiints.

And a followup - if government spending does indeed create wealth, what's the current issues with the economy, considering just how much the government is spending?

Pete

That's not what I'm saying. It's consumer spending that creates wealth (and jobs, by the way).

If you're not going to inform yourself on the issues, it's pointless to discuss it.

John