Government spending is avoidable for certain circumstances such as genuine natural disasters. Economy goes up and down due to its own causes and it is usually best to leave it in the hands of the private sectors.
Credit created by private sectors, credit spent by the private sectors. This way forces the laws of commerce and common sense to the economy and protects tax payers from subjective decisions by interest groups.Booms will be moderate, so will the busts. My humble views.
@tnakai1971jp I'd have to look at the economic history of Japan but, from what I hear Japan had exceptional growth as a result of the war. Japan had a large amount of untapped capacity and a high savings rate, so hence it's enormous growth.
I hear they are have a deflationary spiral and are using a Keynesian approach of spending yet more money to fix it. Trouble is - as you say - government spending has mostly negative effects on growth...
I have not heard of the curve, but it did not work in Japan. Some people cannot properly analyse the effect of government spending by separating the effect of the spending and the economy's own growth factors.
In the 50's till the end of the 80's, the economy of Japan grew and the government was spending lots of money in public projects and in subsidising various private mega projects. People developed an impression that the government spending caused and sustained the growth. Wrong.
Why carnt Governments print their own money interest free. Why use a seperate private profit making central bank.
MrMrBilko 6 months ago
@tdp1909
Government spending is avoidable for certain circumstances such as genuine natural disasters. Economy goes up and down due to its own causes and it is usually best to leave it in the hands of the private sectors.
Credit created by private sectors, credit spent by the private sectors. This way forces the laws of commerce and common sense to the economy and protects tax payers from subjective decisions by interest groups.Booms will be moderate, so will the busts. My humble views.
tnakai1971jp 10 months ago
@tnakai1971jp I'd have to look at the economic history of Japan but, from what I hear Japan had exceptional growth as a result of the war. Japan had a large amount of untapped capacity and a high savings rate, so hence it's enormous growth.
I hear they are have a deflationary spiral and are using a Keynesian approach of spending yet more money to fix it. Trouble is - as you say - government spending has mostly negative effects on growth...
tdp1909 10 months ago
@tdp1909
I have not heard of the curve, but it did not work in Japan. Some people cannot properly analyse the effect of government spending by separating the effect of the spending and the economy's own growth factors.
In the 50's till the end of the 80's, the economy of Japan grew and the government was spending lots of money in public projects and in subsidising various private mega projects. People developed an impression that the government spending caused and sustained the growth. Wrong.
tnakai1971jp 11 months ago
I can't believe people are so deluded as to think that government spending encourages growth - have they never heard of the Rahn Curve?
tdp1909 1 year ago