20 September 2010

Brass Tax

So the economy will be put back on track by the government directing where money is to be spent because individuals and firms, facing uncertainty, are reluctant to spend. The logic here is that the government knows that money should be spent (to boost aggregate demand) and that it know on what to spend that money better than the individuals and firms in the market place.

Oh, and the better part, the government will do the spending with money that doesn't exist.

What could go wrong?

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