1.) C. Romer has said that the government spending multiplier is 1.6. Government does not create wealth, it only redistributes it through taxation, debt, and inflation. This leads me to think that the multiplier could, at best in some magical world without leakages be equal to 1. Does perpetual motion exist in macroeconomics? If I am missing something in the whole multiplier calculation process, could someone enlighten me?
2.) Is all involuntary unemployment, with the exception of an individual being fired for incompetence, a result of government action? Examples are price controls, taxation, regulation, and labor contract enforcement.
3.) Is a system of voluntary government funding, a lottery for example, sustainable?
I know it's a short post...but I need to get back to the Macro hw.
P.S. Sam, thanks for inviting me to contribute!
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