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SW Saskatchewan | The problem of that concept is that IF THERE ARE UNEMPLOYED RESOURCES in the economy, the business activity is less than possible.
Imagine that people are unemployed because of lack of job opportunities. Also that their are some resources not utilized because of lack of dollars to purchase the inputs to put those resources into production. make it even easier to contemplate-farmer john can't operate his farm because he can't obtain a bank loan to buy fuel or employ a tractor driver.
If stimulus money allows the bank to make that loan, then farmer John can operate his farm and presumably produce more wheat/corn/cotton than without the loan.
Money is not wealth but in its role as a medium of exchange enhances the production of wealth. | |
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Inflation and velocity of money
