What happens when there is more available money than resources then?
It seems that the concept you’re either ignoring or not aware of is equilibrium.
Inflation. Which is why people who say MMT means you can print as much money that you want, have no idea what they are talking about.
It would be if it weren’t so sad. There millions of economic illiterates like yourself out there that vote. We’re starting to see what happens when the ignorant outnumber everyone else; runaway deficit spending, cronyism, inflation and shortages.
Please read this.
Point is, that there is much more fiscal space than people believe. We are not close to using our production compacity.
What would we do with everything if we did run at capacity?
Ex. I built inland river barges for a while. Company says “We need to change out our fleet. Contract for 150 barges…”
We ramp up production by increasing hours, hiring more labor, etc.
Contract filled, time to ramp down. Cut hours, drop excess employees while still meeting existing demand, etc.
You cant just keep 400 people banging out thousands of tons of finished product with no one to buy it, at an hourly run rate in the 10’s of thousands of dollars, and you sure as hell can’t stock inventory like that in the hopes that someone decides to buy it.
That would create a surplus on the supply side and plunge the value of the product.
You need an Equilibrium.
1 Like
You don’t even know what it is on a federal level. You ignorantly think the federal budget works like a personal.
There are people that study that subject. Adjust accordingly.
I’m gonna read that as “I have no fucking idea.”.
4 Likes
Where did I say anything about that?
What? Honestly not being a jerk, but is English your second language?
I assume so, because it’s obvious that Economics is his first.
1 Like
Would printing excess money not…cause there to be a deficit in real resources?
You’ve implied it. Just because those exact words aren’t posted, doesn’t mean that isn’t your belief. If it isn’t the please tell us all what it is.
Too much money chasing too little goods
1 Like
No, printing money does not cause there to be a shortage of a real resource.
Where? Quote it.
Does it devalue money since there is more money and the same amount of real resources?
1 Like
The people studying the subject.
1 Like
Bingo! The main cause of inflation.
So, it does inflate the costs of real resources?
It HAS to either inflate the cost or cause a shortage. Those are the only options. I’d love to hear an explanation for any other possibility.
1 Like
And none of these people are well versed in MMT economics. All are slaves to orthodox economics.