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please explain how one man, one town, one nation, all of humanity....can spend more than he/they have earned or worked for in order to induce prosperity. If you can prove how it works with a single person then it should be easy to extrapolate. Until then, don't bother me with propaganda. Lease that to Madison Ave., Wall St.'s cousin.<<
koan: "I can do that. Say you buy an owner occupied fourplex for $300,000. The rents are $1000 a month.
You just spent $300,000 you did not have, but borrowed the money. But the $4,000 a month is paying off your fourplex and one day the rents will be pure income plus you will have the equity of the foruplex.
What Keynes and Krugman are sying is pretty much the same thing i.e. we borrow from the strength of the eocnomy during this depression, build a metaphorical fourplex, (say a new energy grid which can get us off of foreign oil), and other infrastructure like in WWII; and then pay back the loan when prosperity returns.
Keunes was just saying the same thing i.e. we borrow when times are bad and pay it back when times are good.
Bush did not pay it back when times were good, he gave it to his rich friends saying it was the people moiney, but not mentioning we owed 5 trillion dollars. Maybe he should have thought of that and paid it on our debt instead and he also spent it on stupid wars.
How's that? |
