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beyonddisbeliefMay 17, 2008
I'm not going to in-depthly comment on what the equation should be because I don't have strong reason to believe or disblieve the stimulus will work, I was just stating to the person I replied to the theory behind it is not as simple as he stated.However, your demonstration of the MPC (propensity ot consume) and MPS (propensity to save) revealed nothing. If there is anything to be said about MPC and MPS, that is Americans generally have higher MPC than most countries in the world because of poor saving habits and the fact we have much better unemployment benefits and social security to (mildly) support those who screwed up. People generally spend 70~90% if not more of their income, and you really oughta debate whether investments should count as MPC or MPS since the banks are going to invest them anyway.Btw, if you're going to throw equatiosn around at least don't premise it with false statements.Paying bills is still expensed into the economy just like buying food. It becomes your landlord's income and money to spend elsewhere.Putting into the bank means the bank invests it into some company or loan it out to people who will spend it into the economy.
darthdustyMay 17, 2008
If duplicates were pennies you sir would be a f**king millionaire.
naieveMay 18, 2008
The actual term is Fiat Money.Go look it up.FYI the Federal Reserve, who is printing the money, well electronically printing it anyways, is not really run by the US Government, but more by the banks. The same banks who are taking billions daily in low interest loans because they had already proven they didn't know how to use the money and were in danger of going bankrupt. Let me state that again. We are taking loans out against ourselves and giving it to people who just lost BILLIONS of dollars. BRILLIANT!!!Sometimes the solution is worse then the problem, that is where we are heading. Market economies have built in self correcting tendencies, that are being overridden by the banks for short term gain against massive long term pain.Oh and for the guy from another country laughing? Your country is going to get it worse when this happens, the USA has been the driving force behind pretty much the entire upswell in the global economy. Globalization goes both ways.
cheapskateMay 25, 2008
Or maybe you should smoke less pot.
eyespyproMay 30, 2008
You are obviously a big government Socialistic Fascist that does not care that we live in a limited Government Republic. The Democrats & Socialist Republicans are the reason our country is so fu*ked. They could cut trillions in wasteful spending like standing armies, medicare, welfare, and SSI, and we would still be a great nation. You, are a moron.
pratapchowdaryJul 4, 2008
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Closed AccountJan 2, 2009
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