What Is
The Keynsian Multiplier Effect? Targeted spending could have a Multiplier Affect as high as .8. If so, then the continued circulation of the money in the US Economy would have a far greater affect than just the initial spending. That is, $450-billion initially spent, in targeted areas would create $2,250-billion in Gross National Product. The following video explains the Multiplier affect using a .8 Multiplier.
This
is a definite advantage for Tax Revenue. Because of
what they call Marginal Profits, Presidents Kennedy
and Clinton ran surpluses. These were -- by the way --
the only surpluses in the history of USA. Higher than
average marginal profits were responsible for both
surpluses. |