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Originally posted by Oerdin
The reality is government deficits only provide a short term boost but real medium and long term downsides as the government borrowing sucks up all the available capital and raises borrowing costs for the private sector.
Erm, that would be true if the corporations weren't hoarding their profits. There's no competition for capital right now. A nice deficit would create some but then who cares so long as corporations started investing again. The benefit far out ways the cost. Consider the long term gain of quicker economic turn around.
Originally posted by Oerdin
The reality is government deficits only provide a short term boost but real medium and long term downsides as the government borrowing sucks up all the available capital and raises borrowing costs for the private sector.
Erm, that would be true if the corporations weren't hoarding their profits. There's no competition for capital right now. A nice deficit would create some but then who cares so long as corporations started investing again. The benefit far out ways the cost. Consider the long term gain of quicker economic turn around.
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