but what if a policy takes idle money and moves it into spent money? That increases demand, 1/
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which should increase investment, all things considered, right? 2/2
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Replying to @wycats @michaellnorth
from Keynesian perspective yes. Austrian would say, no such thing as idle money
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trying to find article for how Austrians think about this
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Replying to @samselikoff @michaellnorth
it's intuitively reasonable to imagine that people with surplus money may not spend when poor would.
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the "no idle money" story is really a mathematical or logical claim but it's based on weird axioms.
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Replying to @wycats @michaellnorth
right so, the difference is not whether money in a mattress exists (it could). The reason Austrians say its not idle
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is because it's still performing a function in the market
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namely abstaining from consumption puts downward pressure on prices, making investments more profitable on the margin
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in the same way, you and I a'twittering right, lowers prices on developers. Our labor is not "idle resources"
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the term "idle" is now becoming a proxy for the underlying disagreement.
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