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47 sats \ 1 reply \ @Undisciplined 8 Nov \ on: China's Economic Perfect Storm: When More Debt Is Like More Alcohol econ
Isn't new spending supposed to grow GDP by more than 1:1? That's the Keynesian Multiplier idea.
Since GDP is just a count of spending, a newly created yuan only generating 0.8 yuan of GDP seems to mean that 20% of that new yuan crowded out other spending. And now, a newly created yuan is almost entirely just crowding out other spending.
Am I thinking about that right?
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8 sats \ 0 replies \ @TomK OP 8 Nov
You're right. Further proof that keynesianism is bs
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