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To: dr_lew
Are we already over the cliff?

Yes. We passed the point of no return some time ago.

As for those who expect private consumption and investment to take up the slack quickly....I suggest they dispose of the drugs they're consuming before the cops notice them.

48 posted on 07/15/2011 5:19:38 AM PDT by neutrino (Globalization is the economic treason that dare not speak its name.(173))
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To: neutrino
As for those who expect private consumption and investment to take up the slack quickly....I suggest they dispose of the drugs they're consuming before the cops notice them.

What a well thought out convincing argument. Are you honestly saying that 'G' exists in a vacuum having no effect on C, I or NE? You have fallen for the Keynesian fallacy of spending oneself to properity. You have to define what you mean by 'quickly' (which no one actually claimed, but you threw in as a straw-man). Would it be immediate? Probably not, but, released from the bonds of regulation and taxation, this economy would take off. And surprisingly soon. Besides, as was pointed out, it could be argued that government spending should not be included in the first place, since it can only spend what it takes from the economy in taxes, borrowing or inflation. So, even if the nominal GDP figure went down, therefore meeting the definition of a recession, the economy would actually be better off (unless your a government moocher or looter).

51 posted on 07/15/2011 6:44:49 AM PDT by tnlibertarian (Don't mend SS, end it.)
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