Brazil Goes All In on Stimulus
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  • Jacksonian Libertarian

    Deficit spending is never a good idea, even for infrastucture which will gain a long term economic advantage for the economy. Since all Government deficit spending competes with consumers and businesses for the available capital, it crowds consumer and business purchases and investments aside, reducing demand and productivity enhancing business upgrades, and so growth. The best solution for a weak or declining economy is spending and tax cuts. This method pumps capital directly into the economy. An alterative method is to cut spending and payoff debt, this pumps money into the capital markets thus reducing the cost of capital to consumers and businesses.

    “There’s a reason it’s called Capitalism; it’s because Capital is what fuels it.” Jacksonian Libertarian

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