After over a year of Presidential and Congressional debate and sparring about how to reduce spending, cut deficits, and limit debts, the politicians in Washington have finally taken notice that we have a "jobs crisis". Specifically, we simply aren't creating new employment fast enough to reduce our high levels of unemployment. Timidity wrapped in strong … Continue reading The Obama Jobs Proposal Is Less Than Stimulating
multiplier
Multiplier in Action – The Circular Flow
As principles students learn early on, the economy is made of a circular flow of goods, services, and labor. Total spending becomes the $ firms can use to pay workers, which becomes income for those households, which in turn becomes more spending that supports more jobs. The economy grows (and employment grows) when something injects … Continue reading Multiplier in Action – The Circular Flow
