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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: combjelly who wrote (751712)11/7/2013 7:11:06 PM
From: neolib  Read Replies (1) | Respond to of 1577868
 
The broken window thing assumes people have neither insurance or savings.

Its not even just that. Your broken window might inspire you to remodel the kitchen while you are at it. People confuse the accounting of money with economic activity. It is fundamentally the work that you put into things which expands the economy, not the accounting of shuffling $'s around. If someone breaks my window, and as a result I'm motivated to do 8-hours of work instead of spending 8-hours in bed, there is an effect on the economy, even though my 8-hours work on my house didn't involve perhaps a single $ changing hands with anyone.



To: combjelly who wrote (751712)11/7/2013 7:34:46 PM
From: i-node  Respond to of 1577868
 
>> Like one of i-node's favorites, 'you can't borrow your way to prosperity'. People do it all the time when they start businesses or expand an existing business.

If borrowing money would solve economic problems the United States economy would be booming.

We have borrowed more money in the last five years than during any period in history, and will continue to do so during for the next three at least. Yet, economic growth remains anemic, unemployment remains where it has for five years, and few people are better off today than they were five years ago.

Liberals have a fundamental misunderstanding of economics that cannot be overcome with education.



To: combjelly who wrote (751712)11/7/2013 8:10:08 PM
From: mel2211 Recommendation

Recommended By
FJB

  Read Replies (1) | Respond to of 1577868
 
>> The broken window thing assumes people have neither insurance or savings

savings represents future spending. Insurance is spending by other people.

If you break a window and replace it using savings, then you have necessarily reduced your future spending.

If you repeat the process until your savings account is 0, then you will have no future spending from that account.