Government spending doesn't create a future tax liability

Discussion in 'Markets & Economies' started by mmm....shiney!, Jun 4, 2020.

  1. Silver260

    Silver260 Well-Known Member Silver Stacker

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    This is the biggest dilemma that MMT faces. And I think the documentary/book "Princes of the yen" illustrates this perfectly.

    How do you decide were to distribute fiscal stimulus?. What metrics are applicable?.

    It's an oxymoron, but is the concept of "Free Market Fiscal Stimulus" even possible?. Where the most needy ( underutilised ) industries recieve the stimulus?

    Just thinking aloud :)
     
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  2. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Bill Mitchell always goes on about the unemployment figures being the most important indicator. I think Mosler does as well.

    I think they argue that the government’s role is to intervene in sectors where there is “idle capacity” ie demand from consumers but little supply from the private sector.
     
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  3. leo25

    leo25 Well-Known Member Silver Stacker

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    I guess it depends on how far you need to travel. Tokyo to say Sapporo or Hiroshima would be much better by plane. But if within more central Japan then the bullet train is more convenient and soooooo much more comfortable.

    For me as a tourist lugging luggage it was much more convenient and faster by train. Probable cheaper too using the JR pass.
     
    Last edited: Jun 6, 2020
  4. mattyman174

    mattyman174 Member

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    Trouble is, can the politicians be trusted to not do more damage than what already exists. Seems to me its leaving a lot of the human element out of the equation and simply being a reactionary system, just patching holes as they appear in the ship trying to be fast enough that the ship doesn't sink. At the end of the day all you end up with is a ship made out of duck tape.
     
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  5. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Probably not.
     

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