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Politics : Formerly About Advanced Micro Devices
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To: TimF who wrote (294775)7/14/2006 3:19:53 PM
From: combjelly  Read Replies (1) of 1574493
 
"If the government borrows the money than the private sector can't use if for investment."

Well duh. Your point? That was exactly the factor that led to the stagflation of the 1970s.

"If the government taxes away the money than it is also not going to be invested privately."

What do you think they do with that money? Eat it? It still goes into the economy, just maybe not into the same places. While in some cases that might not be particularly effective, in others it definitely is. It all depends on what the monetary policy is.
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