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wswartzendruber
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PostPosted: Thu Nov 29, 2012 5:18 pm    Post subject: Confusion About CNN Money Article Reply with quote

So here's an excerpt from a CNN Money article:

Article Excerpt wrote:
Extending the programs for a year would also boost the economy $1.10 for each dollar of cost since the recipients would soon spend those funds. GDP would rise by 0.2% and 300,000 jobs would be added, according to CBO.

Here's a link to the original story. What I don't get is how you put X amount of money into the economy and get X + 0.10 in return. Could someone explain this for me?
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BonezTheGoon
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PostPosted: Thu Nov 29, 2012 5:28 pm    Post subject: Reply with quote

Simple, for every ten dollars that the program handles you print another dollar. It's all magic!
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energyman76b
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PostPosted: Thu Nov 29, 2012 8:48 pm    Post subject: Reply with quote

almost - this is how banks make money... creating none existing money by lending more money than they got....
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tylerwylie
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PostPosted: Thu Nov 29, 2012 8:56 pm    Post subject: Re: Confusion About CNN Money Article Reply with quote

wswartzendruber wrote:
So here's an excerpt from a CNN Money article:

Article Excerpt wrote:
Extending the programs for a year would also boost the economy $1.10 for each dollar of cost since the recipients would soon spend those funds. GDP would rise by 0.2% and 300,000 jobs would be added, according to CBO.

Here's a link to the original story. What I don't get is how you put X amount of money into the economy and get X + 0.10 in return. Could someone explain this for me?
Basically they haven't read Henry Hazlitt.
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Bones McCracker
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PostPosted: Fri Nov 30, 2012 5:59 am    Post subject: Reply with quote

This has nothing to do with the bank "money multiplier"; it's leftist bullshit to justify government taxation and spending. Government tax-and-spend must always be viewed relative to the alternative, and in that light, it doesn't increase GDP, it decreases it.

In short, it's a load of bullshit. Why can't they just be honest and justify social programs on the basis that they are needed to help relieve suffering? Why do they have to lie and pretend that it has an economically stimulative effect? It doesn't; its effect is the opposite.
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Muso
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PostPosted: Fri Nov 30, 2012 8:40 am    Post subject: Reply with quote

They are rearranging the deck chairs on the Titanic and pointing out how well they have done.
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BonezTheGoon
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PostPosted: Mon Dec 03, 2012 3:43 pm    Post subject: Reply with quote

Muso wrote:
They are rearranging the deck chairs on the Titanic and pointing out how well they have done.


Don't forget that they also increased the speed of the Titanic too.
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energyman76b
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PostPosted: Mon Dec 03, 2012 4:16 pm    Post subject: Reply with quote

BoneKracker wrote:
This has nothing to do with the bank "money multiplier"; it's leftist bullshit to justify government taxation and spending. Government tax-and-spend must always be viewed relative to the alternative, and in that light, it doesn't increase GDP, it decreases it.

In short, it's a load of bullshit. Why can't they just be honest and justify social programs on the basis that they are needed to help relieve suffering? Why do they have to lie and pretend that it has an economically stimulative effect? It doesn't; its effect is the opposite.


oh yeah, because people always spend all their money and such one rich bastard is as good for the economy as 100 poor ones who just try to stay alive....
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AidanJT wrote:

Libertardian denial of reality is wholly unimpressive and unconvincing, and simply serves to demonstrate what a bunch of delusional fools they all are.

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Bones McCracker
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PostPosted: Mon Dec 03, 2012 9:23 pm    Post subject: Reply with quote

Strawman
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