John B Taylor states what I have been saying!!
Yes it is true that I have an economics degree, and I received my degree in 1976. I have always maintained some interest in the economy but I am not an Economist because I have not done any work related to economics. I hope this makes sense because I want to expound upon something that I have been saying for quite some time regarding what I call the available pie.
My argument has been that when government starts spending up big on infrastructure etc. it is in fact taking investment monies away from private enterprise. My argument is best explained by using a pie which can be sliced up into several pieces or shares. My argument is that the pie is defined in some way (I am not an expert and do not know how it is to be defined), and that when Government is borrowing because Government is spending more than it is raking in via revenues, then Government is taking away from private enterprise, (Big, Medium and Small business). When Government borrows more than 50% of savings available for Investment, then that only hurts private enterprise. If private enterprise cannot borrow because the Investment Savings are being soaked up by Government, then in turn profits go down, and when profits go down, then tax revenue also decreases.
This is a very bad situation and is not one that should be lauded by any economist…. yet it seems the Marxist economists such as Krugman continue to peddle the idea that Government should be spending more. This is not just an argument in the USA because Australia also has some economists who claim the same thing, and it seems that European Marxist Economists such as Stieglitz also preach this kind of thinking.
Today I feel somewhat vindicated by a blog piece from the economist John B Taylor stating the obvious, that Krugman is wrong. Thank you John B. Taylor for affirming what I have been trying to state but am too inarticulate when it comes to economics to state the obvious.