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View Diary: Ohio sees ripple effect from manufacturing rebound (33 comments)

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  •  The multiplier effect (6+ / 0-)

    is one of the most intuitively obvious and most easily explained concepts in economics.  The reality of the manner in which investment and production decisions are made in  capitalism is that there's no place for the multiplier effect to even enter into the discussion.  That's strictly an "externality" to every executive economic decision-maker.

    Ever get the feeling you've been cheated?

    by ActivistGuy on Sat Sep 29, 2012 at 03:45:14 PM PDT

    •  It's one of the things (4+ / 0-)

      I use on people who complain about the space programs.
      They don't build spacecraft out of money; that money goes to their employees and their suppliers, and to the suppliers' suppliers and employees (and so on), and from paychecks it goes into groceries and hardware and clothes and cars and and and ....

      (Is it time for the pitchforks and torches yet?)

      by PJEvans on Sat Sep 29, 2012 at 04:06:02 PM PDT

      [ Parent ]

      •  And it creates demands (1+ / 0-)
        Recommended by:
        cocinero

        that drive huge investments and new R&D.  We're all sitting in front of the fruit thereof right this instant.   But that's its public purpose, as opposed to the purpose of private enterprises, which are to maximize internal return on investment, period.   So it's an entirely different sort of decision-making that occurs, one that private capital simply cannot ever replicate becaue of that contradictory purpose.

        Ever get the feeling you've been cheated?

        by ActivistGuy on Sat Sep 29, 2012 at 04:13:37 PM PDT

        [ Parent ]

    •  Intuitively obvious except to some Republicans (0+ / 0-)

      who are in denial about basic economics. They keep insisting that the stimulus didn't work.

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