Since Government stopped putting billions and billions into

greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread

the system because now they are "Y2K OK" how will it affect the economy that has been up till now pumped up by this enormous amount of money by the Federal Gom't. Many medium and large busnisses made nice chunks of money from this 2 year venture and they also had to employe a lot of people. What will happen now??? Will this also slow down the economy

-- jane smyth (wsch117360@aol.com), January 02, 2000

Answers

Jane, The US Gov't spent approx. $8 billion on Y2K. This drying up (with everything else remaining constant) will have a virtually zero effect on the economy. The key phrase in the above sentence, however, is "with everything else remaining constant". Economists use the Latin : Ceterus Paribus (everything else being equal). That's about the only way to discuss macro economics as there are billions of variables determining the economy.

-- Think It (Through@Pollies.Duh), January 02, 2000.

jane: Do you like to mudwrestle?

-- King of Spain (madrid@aol.cum), January 02, 2000.

Kos, Do you like to mudwrestle?

-- (ad@nauseum.com), January 02, 2000.

I suspect you are describing the multi-billion inflation of M3 money supply by the Federal Reserve. If the FED moves to reduce liquidity by raising interest rates watch out NASDAQ and DJIA and mortgages etc - many dominoes still lined up waiting for a small push.

-- Bill P (porterwn@one.net), January 02, 2000.

it would seem impossible for the Fed to pump into the economy 35% more dollars than goods/services during the last three weeks of December, and 18.95% during Oct, Nov and Dec combined, to NOT have some kind of effect.

inflation is still inflation

I'll let others determine what kind of effect that might have...

A is A, a thing is itself.

-- Perry Arnett (pjarnett@pdqnet.net), January 02, 2000.



If everything in IT organizations goes as well as it did with electricity and water, many programmers will be unemployed. Many entire businesses in Y2k remediation will immediately be extinct and real concerns will begin to be productively addressed. It has been infuriating to me that the entire last year has been "on hold" due to y2k concerns. It looks like FOF was the smartest and most effective strategy and all the BIG SPENDERS should be summarilly fired if this blows over.

-- William R. Sullivan (wrs@wham.com), January 02, 2000.

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