Sunday, December 26, 2010

Schiller!

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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