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Deficits might be needed for the foreseeable futureto preventthe private sector going into deficit ( MMT
Government ( federal ) surplusesalways createprivate sector deficits
So a government surplus may not be a good thingcreatesa deficit in the private sector
an unemployment shock(passive) caused byAny private sector deficit
government economic policy(passive) created bya private sector deficit
the public sector surplusresultedin private sector deficit
the non - government sectorwill resultin UK private sector deficit
As you can see , all 6 economic depressions in US history were preceded by prolonged federal gov’t budget surpluses , or put another way , they were preceded by prolonged private sector savings deficitsresultingin prolonged private sector ‘ deficit spending
it must tax far more than it spends on these thingscreatinga private sector deficit
endogenous moneycausesthe private sector to go into deficit
in the deterioration of private financial positions , which is unsustainableresultin the deterioration of private financial positions , which is unsustainable
investment in the economy to dry upcauseinvestment in the economy to dry up
lower spending , production , employment and ultimately recessioncauseslower spending , production , employment and ultimately recession
the budget to go into surpluscausedthe budget to go into surplus
to crowding out of private investment and hence to slower economic growth over the longer runleadto crowding out of private investment and hence to slower economic growth over the longer run
moneyalso createsmoney
to their community 's security and disaster responseto contributeto their community 's security and disaster response
demand for more loans and private sector debt the debt that matterscreatesdemand for more loans and private sector debt the debt that matters
to over leverage and the housing asset bubbleledto over leverage and the housing asset bubble
according to Larry Randall Wray(passive) was caused byaccording to Larry Randall Wray