Monthly Archives: January 2013

Multiplier Effect Multiplies Your Suffering

Everyone is familiar with the tale told to us in High School about when you spend money on groceries, the grocer then has money to buy shoes. And now the government tells us that for every $100 dollars they spend, they can create $150 in GDP growth. But where do the resources to make groceries and shoes and anything else the government buys come from? Isn’t it fascinating that this popular economic fable ignores the most important part of the economy, production? Continue reading

Posted in economics | Leave a comment

Forget the Pie, I Hate Taxes!

I doubt any upcoming tax increase that doesn’t cover current spending levels will make any marginal difference in the economy. It’s the SPENDING that confiscates real resources from the market. Taking fiat paper money out of the market doesn’t hurt the economy as a whole. Continue reading

Posted in economics | Leave a comment