Maybe…but we did less during the financial crisis of 2008 and had a worse outcome. When we analyzed that data from 2008, we decided that it would probably work better if we spent more next time, which is what we did this time…and the result matched the prediction, which is pretty much how you prove something works scientifically. Make a prediction, test the prediction, and if the test results match your prediction, that is evidence for your hypothesis. So, the evidence we have says it’s probably better to increase deficit spending to avoid economic collapses. This isn’t a lab, so we can’t control for every variable to really prove it, and we probably never could…we can just keep evaluating our results after a problem and see if the changes we made resulted in a better or worse outcome than we predicted.
I meant, the way the debt was repaid was possibly what caused the crisis, it’s possible to repay a country’s debt through better economic policies as a very long term project instead of just selling land…
At the same time, the way it was done might have been the issue, right?
Maybe…but we did less during the financial crisis of 2008 and had a worse outcome. When we analyzed that data from 2008, we decided that it would probably work better if we spent more next time, which is what we did this time…and the result matched the prediction, which is pretty much how you prove something works scientifically. Make a prediction, test the prediction, and if the test results match your prediction, that is evidence for your hypothesis. So, the evidence we have says it’s probably better to increase deficit spending to avoid economic collapses. This isn’t a lab, so we can’t control for every variable to really prove it, and we probably never could…we can just keep evaluating our results after a problem and see if the changes we made resulted in a better or worse outcome than we predicted.
I meant, the way the debt was repaid was possibly what caused the crisis, it’s possible to repay a country’s debt through better economic policies as a very long term project instead of just selling land…