Wednesday, November 21, 2012

mangled macro from the guy who taught me micro

"Trade Deficits do not cause unemployment- to wit 2003 to 2008. Trade surplus do not cause employment. Either may be associated with either.


Spending more than we earn causes trade deficits, etc.: low or negative private savings & government spending in excess at all levels.


 In the US about the only savers are Corps. & wealthy individuals. The rest, more than 47%, don't save & dissave, so let's tax the hell out of those who do save and give the $ to those who spend more then they earn [if anything] so we'll have large dissaving - negative saving. That's the Obama/Democrat way "
Alberto Giacometti Cat Alberto Giacometti
Cat
1951
Height 80 cm
Price $20,8 million
Christie’s