Thursday, January 22, 2009

Hair of the dog

I agree with and liked this explanation on why government spending won't get us out of a recession.

One could make the argument that the money pumped into the economy won't come from bread baked today and taken from the baker, but is instead from bread baked in the future, and that in the future, there will be such economic growth that the baker will have lots of excess bread.

But isn't that (spending now what we will have to pay off in the future) what got us into this mess?

No comments: