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View Diary: Familiarize Yourselves With A Liberal Hero / The Fallacies of Austrian Economic Ideology (108 comments)

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  •  Well, duh! (0+ / 0-)


    • taxes exceed government spending, a tax surplus (fiscal responsibility) in which case money is flowing from the private sector to the government, or
    • government spending exceeds tax revenue, a deficit (fiscal irresponsibility) in which case money flows from the government to the private sector.

    In a situation where private demand has collapsed for lack of money, should money flow from government to the private sector or vice versa?  

    I favor fiscal irresponsibility and recommend that the Austerians go xxxx themselves.

    •  Not exactly (0+ / 0-)

      First of all, situation 1 "fiscal responsibility" could help during a recession depending on who's being taxed. Right now, rich people do not spend the vast majority of their money because they have more money than they can possibly spend. So the government taxes them and spends it on something else to stimulate demand. This worked well during the great depression.

      "Poor man wanna be rich, Rich man wanna be King, and the King ain't satisfied till he rules everything." Bruce Springsteen.

      by Johnnythebandit on Sun Jan 08, 2012 at 02:40:35 PM PST

      [ Parent ]

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