For every dollar that was spent, someone had to provide that dollar. It came from taxes, debt, or printing money.
-taxes mean that we had to take 1 dollar out of the economy, so that the government could spend that somewhere else. (ignoring the administrative costs)
-debt means that dollar has to be paid back with interest. So factor in how much we will lose as a nation due to repaying the loan and the multiplier loses its value.
-printing money causes the money to lose its value.
For every dollar that was spent, someone had to provide that dollar. It came from taxes, debt, or printing money.
-taxes mean that we had to take 1 dollar out of the economy, so that the government could spend that somewhere else. (ignoring the administrative costs)
-debt means that dollar has to be paid back with interest. So factor in how much we will lose as a nation due to repaying the loan and the multiplier loses its value.
-printing money causes the money to lose its value.
powercatjeffy 1 year ago