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Reply #40: Think of it this way [View All]

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Home » Discuss » Archives » General Discussion: Presidential (Through Nov 2009)

Nederland

(1000+ posts) Send PM | Profile | Ignore

Sun Aug-28-05 03:27 PM
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40. Think of it this way

Investment money is the immediate cause of job creation.

Demand or anticipated demand is the cause of investment.

The two are related, but distinct. The key point is that if you have investment money but no real demand, jobs can still be created. Yes, they will be gone once the original investment is used up, but they will be created and exist for some period of time. However, if you have demand but no investment, no jobs will be created.

As Keynes and FDR realized 75 years ago, investment is the key.

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