Who Benefits When Washington Spends? (youtube.com)
‘When the government spends money, it does not disapper. It goes straight into the checking accounts of households.’
In 2000, Clinton balanced the budget ('government debt might disappear'), and household income reached an all time low that same year.
Business (non financial services) net income is usually around 0% net, and is often slightly negative, because its purpose is to funnel its income to its owner, ie usually wealthy households, through dividends or whatever. Improvements in this also occur when government debts increase. Government debt goes to households and to a lesser extent to businesses. There is a distinct sector within the business community (businesses that profit from lower income household spending) that benefits.
Financial sector also is near 0% net income, for the same reason, because it provides income to (mostly wealthy) households. They benefit when government spends.
US has negative income, because it does business with foreign businesses. Net trade deficit, ie the rest of the world makes more money off the US than US makes from other countries total, because US is buying foreign products. Buying foreign is increased debt in the private sector.
The government debt has steadily increased, up to now $38t (34% of GDP), but the household net worth has steadily increased and is now $180t (580% of GDP).
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‘Last summer there was the court case where [Google] was guilty of having a monopoly and [the judge] was going to rule on what the remedies were going to be’ ... and since that
‘the judge said they were existentially threatened in their search business and so everything had changed’. Sacks still make great points sometimes. This one that OpenAI was great for Google because it was the only reason Google wasn't considered a monopoly at the time when something could actually be done about it ie when Google had just been found to have a monopoly in court and an action was able to be handed to them.
In the past couple years, people have criticized Google and said they were falling behind OpenAI and other AI companies for their products, saying Google was afraid to canabalize it's ad revenue, but maybe it was more strategic.
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