this post was submitted on 17 Oct 2023
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Markiplier (tumblr post edit era) (files.catbox.moe)
submitted 2 years ago by [email protected] to c/[email protected]
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[–] [email protected] 11 points 2 years ago* (last edited 2 years ago)

It's the concept that government spending actually leads to more consumer spending. To calculate the total economic growth of a government spending package, you add in a multiplier (aka a markiplier) to the total expense to get the total economic growth.

The govt spends 1 mil, 500k of that goes to consumers who spend it again, then 250k of that is spent again, etc. The total growth is 2 mil. This kind of logic is used to justify government spending packages.