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To: listenhillary
Keynesianism and the magic multiplier rubbish is easily demolished with a couple of simple questions: since pretty much everyone agrees that economic growth is a good thing, if there really is a positive "multiplier effect" and government spending truly grows the economy, then why wouldn't you advocate enormous government spending ALL of the time, and why would you ever want to put a limit on that spending?

The Keynesians can't possibly come up with answers to those questions that make any sense in the real world.

As Albert Einstein said, insanity is doing the same thing over and over again and expecting to get different results, and the Keynesians utterly qualify as insane.

19 posted on 11/02/2010 9:07:39 AM PDT by jpl (It's "My Big Fat Deadly Greek Riot", coming soon to a bankrupt socialist state near you.)
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To: jpl

I think that is what Krugman’s entire theory is based on. Why not spend infinite sums if you are going to get a $1.60 muliplier?


25 posted on 11/02/2010 10:46:08 AM PDT by CharlieOK1 (m Ò_ó m)
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