Sunday, October 16, 2011

Solutions

Obviously I think the most obvious solution to what currently ails us - not enough aggregate demand - is to give free money to people. But it's worth nothing that even hardcore glibertarians must acknowledge that aggregate output is, in part, going to depend on the quantity of what we perceive of as public infrastructure, even if they think that rights of way can be magically procured by the free market fairy. In other words, GDP = f(., stock of G) where . is a bunch of other stuff and stock of G is the amount of our current public infrastructure. If stock of G is declining over time...