tag:blogger.com,1999:blog-7539577136486286096.post240649342886077494..comments2024-03-28T02:46:41.090-05:00Comments on Supply and Demand (in that order): In Construction More Spending Can Also Mean LessCasey B. Mulliganhttp://www.blogger.com/profile/03317454408275318282noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7539577136486286096.post-48805523064305568872011-02-02T09:09:35.329-06:002011-02-02T09:09:35.329-06:00If there was a war for resources between gov't...If there was a war for resources between gov't deficits and private investment spending you would have seen the battle played out on interest rates. Interest rates would have gone up as those seeking private construction spending would have to fight gov't borrowing for the funds in the savings markets. Yet we saw interest rates going down and remaining down.<br /><br />Crowd out is only relevant at full employment. If all the construction workers are building gov't projects then yes those seeking to build a private office building or shopping mall will find it difficult. But there's no evidence that any sector was enjoying full employment. <br /><br />With unutilied resources left 'on the table', there's nothing to get crowded out.Boontonhttps://www.blogger.com/profile/08998961646450853906noreply@blogger.com