There's No Near-Term 'Sugar High' From Government Spending

Members of the commentariat (credentialed and without) continue to promote the fiction that a lack of consumption slows economic growth. They’re confused. When we don’t spend we tend to store the unspent wealth with banks and other financial intermediaries. Rest assured that those who rent our wealth from us don’t just pay us for our excess ahead of warehousing it. Instead, they immediately lend what we rent to them to those with near-term consumptive desires; that, or they match it with entrepreneurs and businesses in need of growth capital.

The above truth eludes economists and pundits. .

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