No. of Recommendations: 8
Find an intro econ book and look up "multiplier."

If economists don't understand money their "intro econ books" are worthless. Back in Caracas I have wall-full of books including authors like Adam Smith, Karl Marx, Niall Ferguson, John Kenneth Galbraith (I have read more of his books than by any other economist), George Gilder, and many others. I have also read essays by Frederic Bastiat, Frank H. Knight, and many others. BTW, for a short time I was enrolled in Economics at MIT -- dominated at the time by Paul Samuelson. It's not that I'm clueless about classical economics. It's that classical economics is mostly wrong.

But on the subject of "multiplier" you don't need to study economics! I discovered quite independently that having a job gives you no multiplier, having a business does, investing in the stock market does. Thanks for the suggestion but repeating what dead white males wrote is not the answer to the issue. That's the whole point of david fb's OP!

I've been pondering why in the 21st Century central banks printing money has not caused inflation while mining gold and silver in Potosí caused inflation in Spain that spread to all of Europe, factoid that I picked up from one of the above mentioned authors. ;) I'm thinking that 21st Century technology is excessively deflationary to the point that pushing on a wet noodle no longer works. The inflation during the Spanish empire is explained by too much money chasing too few goods. The European economy was incapable of producing sufficient goods to absorb all that money. The 21st. Century is capable of producing all the goods that money can buy. The problem with printing money in the 21st. Century is its distribution. Giving it to banks is no good. As much as I hate to admit it, Universal Basic Income might actually work but we will need to revise our code of ethics which was developed for a time of scare productivity.

I can hardly believe I wrote the above!

The Captain
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