Tuesday, September 20, 2011

Governments run deficits and the economy grows....

But the problem with deficit spending is not pay back the deficit but the government giving money to people who support the politicians.

Are we ever in favor of corruption? Just look at  Solyndra ,

Oba mama giving 500 million for solar power and the company 2 years later filing for bankruptcy. How's that for stimulus?

What should government do to boost jobs?

Send me and you a check!!!

A negative income tax would work but the gangsters in Washington would probably have to get honest jobs. Instead, they will threaten social Security, Medicare or Defense spending and you will vote for this gang again!

After all, that's why they let you vote!!!

Here's how a modern fiat system works if you are curious:
3 essential features in Modern Money | Modern Money Mechanics
Within a modern monetary economy, as a matter of national accounting, the sovereign government deficit (or surplus) equals the non-government surplus (or deficit), also known as the private sector (and here includes the international sector). The failure to recognise this relationship is the major oversight of the current orthodox analysis.

In aggregate, there can be no net savings of financial assets of the non-government sector (private sector) without cumulative government deficit spending. The sovereign government via net spending (deficits) is the only entity that can provide the non-government sector (private sector) with net financial assets (net savings) and thereby simultaneously accommodate any net desire to save and hence eliminate unemployment.

Additionally, and contrary to current orthodox rhetoric, the systematic pursuit of government budget surpluses is necessarily manifested as systematic declines in private sector savings.

The decreasing levels of net private savings which are manifest in the public surpluses increasingly leverage the private sector. Adopting a growth strategy that relies on increasingly leveraging the private sector is unsustainable. So you have to trace the private indebtedness back to the conduct of the government sector.

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