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Politics : Formerly About Advanced Micro Devices

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To: combjelly who wrote (793922)	7/8/2014 10:41:35 PM
From: TimF	1 Recommendation Read Replies (1) of 1577177

Pumping more money into an economy is going to cause it to grow faster. Pumping more money can mean "printing" money (now mostly electronic), that causes nominal growth, but not generally real growth (except sometimes when money is very tight and inflation low). More government spending, means more borrowing, or more taxation. Both take money from elsewhere. It also increases nominal GDP or even the stats for real GDP because a dollar of government spending (whatever its utility or even dis-utility) counts as a dollar of GDP. An important factor is what the spending is for. To a point, well selected, and efficiently built infrastructure tends to be positive. More spending on regulations and barriers to trade and commerce not so much. Bailouts might have a short term benefit, but tend to be negative long term, or perhaps even in the medium run.

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