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View Diary: Dean Baker: How much unemployment was caused by Reinhart & Rogoff (74 comments)

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  •  GDP doesnt care (1+ / 0-)
    Recommended by:
    Ginny in CO

    you can argue the multiplier for a police officer affects other parts of the GDP less than, say, a bridge.  But then you would open the argument that 100k more police officers has a much better effect on the economy than a tax cut to a billionaire.

    These capitalists generally act harmoniously and in concert to fleece the people, and now that they have got into a quarrel with themselves, we are called upon to appropriate the people's money to settle the quarrel. Abraham Lincoln

    by Nailbanger on Fri Apr 26, 2013 at 09:21:37 PM PDT

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    •  I have yet to be... (0+ / 0-)

      ...convinced there is any such thing as a multiplier.

      And even if there is a multiplier for deficit spending, there must be a reverse multiplier when you pay the debt down, right?

      (-5.50,-6.67): Left Libertarian
      Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

      by Sparhawk on Fri Apr 26, 2013 at 10:15:19 PM PDT

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      •  Surely you understand the police officer (0+ / 0-)

        takes his pay and purchases housing, food, entertainment, and donuts.   The donut shop takes the money and buys equipment, lights, flour and sprinkles.  The sprinkles company buys labor, and then union busting thugs.  The thugs go out and buy baseball bats and chains and late model american sedans and braces for the kids teeth.......
        Money moves through the economy in this way.  Unless it hits the top of the pyramid, the 1% of the 1%, who generally hoarde it.  But the cop, the cop spends .

        These capitalists generally act harmoniously and in concert to fleece the people, and now that they have got into a quarrel with themselves, we are called upon to appropriate the people's money to settle the quarrel. Abraham Lincoln

        by Nailbanger on Fri Apr 26, 2013 at 10:29:42 PM PDT

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        •  Re (1+ / 0-)
          Recommended by:
          nextstep

          Look at the other link I posted about the Broken Window fallacy. That's all you're suggesting here.

          It's not that I don't think what cops do is valuable. I'd just prefer to hire as few of them as I reasonably can. Any more than that is a waste.

          (-5.50,-6.67): Left Libertarian
          Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

          by Sparhawk on Fri Apr 26, 2013 at 10:34:13 PM PDT

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