Posted by bad_luck on 3/4/2013 10:07:00 AM (view original):
I'm arguing that private citizens, acting rationally, make depressed demand worse. In order to escape that downward spiral, the economy needs someone willing to spend a ton of money.
So it's a good thing that our government steps in and buys a $4 hammer for $100? Couldn't they accomplish the same thing by buying 25 hammers, when they only need 1, for $4?
In fact, wouldn't that be better because they'd need storage space, at a cost, to store all the stuff they don't need?