danielpalos
Diamond Member
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- Banned
- #481
It doesn't matter if the multiplier effect, 2 in this case, creates more economic activity? A multiplier of two means that for every one dollar spent, two dollars of economic activity is generated. You simply ignoring economics is worse (and more annoying) and means right wingers will fall for the general malfare but complain about the general welfare.IOW, the money first has to be taken out of the economy by taxes and borrowing. Until you stop pretending there is no opportunity cost associated with taking money out of the economy, you will never grasp why grand socialist schemes like that always fail.
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