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- @RonPaul, "It makes no sense to tax money" http://bit.ly/2sHH7Wc
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- It's important to remember that rising inflation isn't just some abstract economic statistic. It means prices are going up. http://bit.ly/2AsklJ3
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- Dartmouth Remarks On the Minimum Wage
- The dollar is tanking. Gold is soaring. All these forecasts that I’ve been making, or that I used to make, are starting to come true and nobody cares. http://bit.ly/2DMF5MP
- Uncle Sam isn’t the only one running up credit card debts. Everyday Americans are also piling on the debt. Total household debt soared to a record $13 trillion dollars in 2017. http://bit.ly/2nWl8Kw
Wednesday, September 30, 2015
Question regarding Spending vs. Saving to improve the economy
Keynesians often advocate for more incentives to "get people spending" to improve the economy, while saving or "hoarding" is not good for the economy. I'm familiar with the rebuttal that money saved is also being circulated in the economy, since banks lend out savings to people who need loans and will spend that money. In other words, increased spending in consumer goods will reduce the amount spent in capital goods and vice versa. However, what if banks instead make loans to people who will use that money for an investment in another country? If money from domestic saving is transferred to projects abroad, wouldn't consumer spending be better than capital spending for that country? Hoping you Austrians could clear this up for me.