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31 sats \ 0 replies \ @Rothbardian_fanatic 8 Oct \ on: The Keynesian Multiplier Fairy Tale econ
Shostak goes through the basics of Austrian economics. You must produce before you consume. Most production is for consuming production from other fields of production. Like money, which is usually gathered to spend on other goods, production is usually done to purchase other goods, not for direct consumption by the producer. Here and now, government spending comes from fiat creation without production, which causes nothing but chaos and inflation (in all cases the creation of more money in circulation, only) in markets. His conclusion is that government spending is not a multiplier but a divider due to the resources being forcibly taken from the economy,