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Public vs. Private

Brad DeLong

But surely we believe that if the U.S. government were to follow the Countrywide plan–to send its representatives out onto the streets to have them walk up to people and say: "Here’s $500,000. You can have it if you go buy a house"–then that would drive a recovery, right? I mean it drove a recovery in 2003-2006, didn’t it?
Even the Austrians believe that spending–in their case, driven by credit-expansion created by the malefactors of fractional-reserve banking–works. So why can’t the government do what fractional-reserve bankers can?

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