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- Jan 2, 2006
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Kushinator.. it was already explained to you how that is incomplete. Government competes with private industry which crowds out.
Just because you lack the understanding to figure out that when the government say.. decides to build or support building healthcare clinics. that this competes with private interest. Or when it gives a special subsidy to a few large corn growers.. or a myriad of other things.. that this is also crowding out and is not captured by "interest rates".
You got schooled on this before. Heck.. I doubt you even understood that this can happen if I had not brought it up. And provided links of examples of such.
The only one in make believe land is you.. who think that interests rates are the only indicator of crowding out.
Your "logic" abandons the most basic IS/LM analysis. Do explain what occurs when savings increases, or there is a left shift on the IS curve. The length you will now go to wiggle out of your cereal box smart comment will be rather interesting.
:lol:
Edit: so that it cannot be denied