Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Path: utzoo!watmath!clyde!burl!hou3c!hocda!houxm!ihnp4!inuxc!pur-ee!uiucdcs!uiuccsb!eich From: eich@uiuccsb.UUCP Newsgroups: net.flame Subject: Re: Re: Ronnie, etc... - (nf) Message-ID: <5739@uiucdcs.UUCP> Date: Sat, 18-Feb-84 03:28:28 EST Article-I.D.: uiucdcs.5739 Posted: Sat Feb 18 03:28:28 1984 Date-Received: Mon, 20-Feb-84 07:14:27 EST Lines: 15 #R:orca:-52700:uiuccsb:7600089:000:632 uiuccsb!eich Feb 18 01:37:00 1984 /***** uiuccsb:net.flame / ihuxp!wbpesch / 6:18 pm Feb 9, 1984 */ >Larry, could we possibly put the blame on the raise of inflation on >our leaving Viet Nam, with the associated cut back in the billions put >into the economy by the government? /* ---------- */ How can the government put billions into the economy? It can't, without first getting them out of the economy, and charging overhead. It either raises those billions through taxation, which drives a wedge between production and investment and encourages consumption, or else it prints more dollars, and more dollars chasing the same goods and services == inflation.