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Comment: Consumption is a tricky thing in this debate

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Consumption is a tricky thing in this debate

For example who is doing the consuming?

public or private sector?

How is the consumption paid for? Saved capital or on credit expansion?

Without this info we are left to guess and cannot make any sound arguments for or against.

Obviously if consumption is done by the private sector using saved capital, thereby creating a larger demand and increased production, all is well.

No so much the other way. That is the disagreement or IMO fallacy of Keynesian thought. They don't care where the consumption comes from, the ends justfy the means. Austrians believe increased "artifical" consumption (ie gov spending) will create bubbles.