Unemployment is caused by a lack of private investment
Hi Cullen, in an old post of yours, you stated that “Unemployment is caused by a lack of private investment” and that “…Capitalists will rarely spend enough into the economy to provide for full employment because the profit motive is too strong. One could actually argue that the idea of “full employment” is at odds with the natural profit seeking goal of capitalism…” http://www.pragcap.com/modern-monetary-theory-mmt-critique/
I agree with your views on that account.
However, I don’t understand your line of thought for the rest of the article on why you reject the notion that larger deficits would reduce unemployment
Rent, utility, gas and food bills, which are universally private services and also subject to rampant leveraged speculated induced price swings, constitute a huge percentage of the average person’s income. Surely a larger government deficit that allows consumers to save more will allow more spending in the economy = more money for business to invest and create jobs?
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