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Sunday, 6 November 2016

"Keynesian economics is the doctrine that economic downturns are due to inadequate economic demand for goods and services, even though human wants are insatiable. So the answer under this thinking is to supposedly increase economic demand by the federal government increasing federal spending, deficits and debt."
-Forbes Magazine.

The increase in any spending should be to stimulate consumption to ensure inadequate economic demand for goods and services...is not an issue. There is no doubt that human wants are insatiable. What causes inadequate economic demand? What causes inadequate economic demand is insufficient ability for consumption. Insufficient ability for consumption is caused by insufficient money in the hands of consumers.  You could try to pay one person two salaries but he is not going to buy two homes or two vehicles. Even if he did, will he really pay two mortgages or gas both vehicles sufficiently on a weekly basis? Is he obligated to consume twice as much after acquisition? Even if he did buy two homes, it seems there are insufficient numbers of individuals to rent property.  Your hatred blinds your analysis fails to accept the colorless, race free nature or widget value($100/wk) of a full tank of gas.  The person who has two salaries is not buying two tanks of gas a week. Send instructions to the people who have two salaries to buy two tanks of gas a week but will he be able to empty both tanks and drive to Walmart fast enough in two vehicles to buy gas for the following week? Maybe he should hire a driver for the second vehicle?   This has happened before. Keep arguing. Watch a war movie. Start with the American Civil war.  

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