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Chicken and Egg, Money and Stuff
The issue is never which comes first, money or the
stuff it can buy. It is always, which is in short supply,
money or the things we need.
If money from all sources, bank deposits and loans,
government spending, lending, and contracts, etc.,
is in short supply, then government must raise the
supply by spending on needed things.
If things are in short supply then government must
stimulate their production -- as with hospitals,
energy, rubber, aluminum, weapons, etc.
If money is in over-supply, and people are fleeing
out of it to stuff still on the shelves, money must be
made more scarce. Taxes or compulsory saving
will do.
Is stuff is in oversupply, like drugs and cigarettes,
government must encourage that which will reduce
the supply -- but not by counter productive or
wicked means.
Other than that, markets can operate freely,
especially where outcomes are more entertainment
than deadly in consequence.
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