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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (215903)	2/1/2007 10:22:25 PM
From: neolib	Read Replies (1) \| Respond to of 281500

Thanks! After rereading the site I linked, I understand better. Still, it fails to look at closed system vs open systems, i.e. there is an even better short term multiplier if the government deficit spends rather than taxes, with the funding coming from outside the system. It all comes down to how believable the models of consumption vs. wealth are as well as the effective distribution of both private and government spending. With the US savings rate near zero, and the Feds spending 25% on military, I frankly doubt there is much effectiveness in said theory. The Devil is certainly in the details at any rate, and it might be either positive or negative. It really is simply a theory about who spends money more effectively. Do individuals under utilize their incremental assets or does the government waste more? Got me. I don't have an ideological dog in that fight, so am open to whatever the best data shows.