Under certain idealized assumptions, a concept known as the “balanced-budget multiplier theorem” states that national income is raised, dollar for dollar, with any increase in government expenditure on goods and services that is matched by a tax increase.Says Schiller.
Schiller does not say that the idealize assumptions have been in very serious dispute among economists for some time. Another idealized assumption is that Congress producing anti-gravity machines would have a high multiplier.
For the record, the economy operates with a bounded calculus and the intermediate solutions that Keynes and Schiller desire do not exist.
Schiller knows he is spouting disputed assumptions, and I have the right to inform you whenever disputed bullshit shows up.
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