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> And how does the government really stimulate demand?

Building things (roads, spaceships, bridges, etc), funding things (medical research, education, etc) and other obvious things. Low interest rates make longer term projects much more viable.



Don't forget war. $800 billion to $2.4 trillion spent on the Iraq War depending on who's counting.

https://en.wikipedia.org/wiki/Financial_cost_of_the_Iraq_War


> Don't forget war.

This is really the broken window fallacy.




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