Saturday, May 28, 2011

Simple minded economists

Stephanie Kelton PHD victim of this equation:
[1] Y = C + I + G, where:


Y = GDP = National Income
C = Aggregate Consumption Expenditure
I = Aggregate Investment Expenditure
G = Aggregate Government Expenditure

If you want a smooth G then economists are going to need an army to keep California, Illinois, NY and Texas in check. These are the major funding states for Washington DC, and the people in these states do not go around with one G in their head.

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