To Obama government money comes out of thin air

Obama on June 1, 2012 in Golden Valley, MN: I assume there are some folks here who could use $3,000 a year. Let's get that done right now. That means they're going to be -- you know, if you have $3,000 a year extra, that helps you pay down your credit cards, that helps you go out and buy some things that your family needs, which is good for business. Maybe somebody will be replacing some thingamajig for their furnace. They've been putting that off. But if they got that extra money, they might just go out there and buy that thing, right? . . .
Obama fails to understand that the money has to come from someplace. If government takes the money from some people and gives to others, why will that increase total spending.  If you put your pay check in the bank, either you spend it on the mortgage or car or food or the bank buys bonds or lends out the money.  To believe the typical MPC argument you would have to believe that saving is the equivalent to throwing money in a hole in the backyard. 

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