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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?


To: Steve Lokness who wrote (268353)1/30/2015 12:21:49 PM
From: Wharf Rat  Read Replies (1) | Respond to of 540984
 
"He said we had to push money into the hands of people to create demand. How do you meet more and more demand? More capacity! "

How about restoring existing capacity first? We can give tax dollars to a bridge building company in Ohio, who in turn will demand more steel and cement, and who will give some to their workers, who will demand a road trip, or a date night every week, or a new car ?

Original story: The tragic case of the man killed in the Interstate 75 overpass collapse was closed relatively quickly, Cincinnati and Hamilton County officials said Tuesday.

Brandon Carl, 35, of Augusta, Kentucky, died when the Hopple Street overpass bridge suffered a "catastrophic pancake" collapse, according to the Hamilton County Coroner's office.

cincinnati.com



To: Steve Lokness who wrote (268353)1/30/2015 12:34:12 PM
From: Sam  Read Replies (1) | Respond to of 540984
 
How do you meet more and more demand? More capacity!

No, that isn't correct. What Krugman advocates is for the govt create demand when the private sector has fallen into one of its cyclical downturns. During a cyclical downturn, there is plenty of unused capacity, both in terms of idle factories and unemployed or underemployed workers.

Use existing capacity. Don't create "new" capacity.