Like most of sub-Saharan Africa, the informal sector is massive in Mozambique, but the profits are rarely deposited. The government says if they were that cash could help banks provide loans to other businesses, which could in turn create jobs. (src)Even with the calamitous nature of the banking crisis in the West, I don't think our economic infrastructure has hit Mozambican levels. There's no paradox here between saving and economic growth.For your added amusement, here (link) is Paul Krugman making a very similar point, back when he was a proper economist. Feel free to discuss answers to the following question: "Richard Dawkins is to biology as Paul Krugman is to what?"
"A fool finds no pleasure in understanding but delights in airing his own opinions."
— Prov. 18:2
Monday, August 15, 2011
Paying attention, Keynesians?
This is where the paradox of thrift comes in:
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The answer being "economics". Them both having left their previous professions to play politics.
Evolution and atheism being politically significant in the USA ...
Back when Krugman was a proper economist, he predicted the boom caused by Reagan cutting taxes and regulations would lead to high inflation...and we all know how that turned out. And his whole article seems to be premised on the theory that the 1970s didn't actually happen.
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