tag:blogger.com,1999:blog-11027528911364475.post7182196283676837700..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: Krugman's Stimulus Math: $600 BillionJakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-11027528911364475.post-48324315768822219422008-11-12T22:50:00.000-08:002008-11-12T22:50:00.000-08:00Ideas being mooted for how to spend the stimulus -...Ideas being mooted for how to spend the stimulus - such as infrastructure spending and increased unemployment benefits - have multipliers closer to 2 than to 1.pwm76https://www.blogger.com/profile/06360404038525306119noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-19896522899772149242008-11-12T11:00:00.000-08:002008-11-12T11:00:00.000-08:00interesting however I don't believe Krugman's esti...interesting however I don't believe Krugman's estimate includes the NEGATIVE GDP effect of tall the outstanding debt in consumers hands. Because that debt is now accumulating even more penalties it takes MORE consumer spending to overcome it.<BR/><BR/>SO any stimulus either has to STOP the monthly cost of consumer debt or at least freeze it at pre crisis amounts to even get us back to the level of consumer spending that was happening before the stimulus.<BR/><BR/>the huge amount of consumer debt simple must be either eliminated or inflated to nothing or we will stay in depression like third world countries in debt to the IMF who NEVER get out of debt and NEVER recover.<BR/><BR/>We are in afar worse situation than in the great depression. Int he great depression people didn't have debt - they just didn't have income to spend. Now people don't have income to spend AND they have huge amounts of impossible increasing usurious interest rated debt as well.Unknownhttps://www.blogger.com/profile/16275604828416301856noreply@blogger.com