What’s more, these programs [ services to the poor] serve as “automatic stabilizers” during an economic downturn: In a weak economy, as more people lose income and become eligible for federal benefits, the programs expand, putting more money in more people’s pockets. People then spend that money, increasing demand and helping the economy recover.
This guy used to be secretary ok interest payments. He thinks the swamp counter cyclical. So he has to explain counter cyclical means recessions almost always fall on presidential regime change, If Robert has no adequate explanation, then millennials should not pay taxes.
BIS has an explanation:
BIS research has found evidence that financial (credit) booms tend to undermine productivity growth, further helping to explain the post-crisis weakness ... Drawing on a sample of over 40 countries and over 40 years, the data suggest that this happens mainly as a result of a misallocation of resources towards lower-productivity growth sectors, notably construction, and that the impact of the misallocations that occur during the boom is twice as large in the wake of a subsequent banking crisis. The reasons are unclear, but may reflect, at least in part, the fact that overindebtedness and a broken banking system make it harder to reallocate resources away from bloated sectors during the bust. ... The findings could help explain the faster pace of the long-term decline in productivity growth seen in recent years.
Misallocation of resources is code word for bailout my friends and stick millennials with the losses.
Political parties make big lies. Conservative becomes borrow more money, progressive means bailout one segment of voter. The correct theory should be. millennials ain't paying for it.
No comments:
Post a Comment