by This is a very clear, simple to understand, and short explanation of the multiplier effect, which completely undercuts the argument for fiscal austerity. Coupled with MMT, the multiplier effect makes a much bigger pie possible through intelligently targeted fiscal policy.Richard Murphy mentions education and healthcare but public investment in infrastructure and R&D have similarly high multipliers, unlike tax cuts for the rich and military spending, which have low multipliers. Currently, politicians on the right and at the center tend to favor the latter and deprecate the former, which results less than optimal distribution and a stagnant or declining living standard while leading to greater inequality.Pass it on.Tax Research UKThe multiplier shows that not all government spending is
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This is a very clear, simple to understand, and short explanation of the multiplier effect, which completely undercuts the argument for fiscal austerity.
Coupled with MMT, the multiplier effect makes a much bigger pie possible through intelligently targeted fiscal policy.
Richard Murphy mentions education and healthcare but public investment in infrastructure and R&D have similarly high multipliers, unlike tax cuts for the rich and military spending, which have low multipliers.
Currently, politicians on the right and at the center tend to favor the latter and deprecate the former, which results less than optimal distribution and a stagnant or declining living standard while leading to greater inequality.
Pass it on.
Tax Research UKThe multiplier shows that not all government spending is equal
Richard Murphy | Professor of Practice in International Political Economy at City University, London; Director of Tax Research UK; non-executive director of Cambridge Econometrics, and a member of the Progressive Economy Forum