Shadows
YaBB God
Posts: 4,956
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« on: April 14, 2017, 04:38:24 AM » |
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There is always some multiplier effect for any government spending & it can truly never be 0. It can high or low depending on many things. Infra & other job creating plus asset creating investments tend to have a high level of multiplier effect which determines the consumption function "C" of GDP which the government can influence through "G" in GDP = C + I + G + NX(Ex-Im)
Keynesian economics is followed by every government in the world because it is one of the few things statistically proven. But in times of recession or poor economic scenario, government steps in & spends in infra, assets & job creating sectors to push the demand line rightwards - That is not debatable! The debate could be how much to spend, in what areas, how to finance it, how to cut down on the deficits, etc.
Keynes never told to give 100's of Billions in bailouts or run 100's of Billions in deficits years after the recession.
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