Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
le roi: You can’t talk Keynes anymore! The Western World kept the idea of deficit spending (job creation) & discarded the “paying it off” idea (increase taxes). Because of this incremental disregard for discipline, debtor behavior now crowds out saver behavior. The Keynesian concept of the citizenry working less hours & having more leisure time was ignored as well! I understand he didn't praise saving, but I don't think debt-driven serfdom was his idea?
Then came the ingenious “no need for recessions” quasi-Keynesians: more emphasis on carefree low interest rate policy—fused with fiscal spending—to benefit society (anti-deflation). After all, prosperity, via low cost credit expansion, was why the human race lives on this planet! Once the Economy was saturated with credit expansion, the mantra “deficits don’t matter” became popular.
What we have now is TOTAL reliance on Gov’ts to pay off MASSIVE public & private debts; which cleans up the playing field. The Big Business/Banks patiently sit back & wait until the time is right for positive inflation parameters to materialize. This is called Moral Hazard!
So you take money off people who earn it, then the government takes a huge handling fee, then the pennies find their way to you. The only people who are better off are those taking the handling fee. I wonder where Krugman fits in.
Obama thinks that treating the symptom will make the cause go away? By treating the symptom and ignoring the cause will only result in collapse.
Is this what Obama wants?
Another person who obviously never read the theory. What is your theory about people having opinions on subject matter where they are wholly and willfully ignorant?
You choose a convenient stopping point. It was not until the large weaponized keynesianism of WWII correcting for the austerity of 1937 and the inadequate size of the New Deal that the perpetual high unemployment that characterized the Great Depression was defeated.
If military spending is such a 'stimulant', why didnt the USSR boom in the 80s, when as much as 70-80% of GDP was directed to military endeavors?
FWIW i always valued Keynes social views far more than his economic ones.
you do realize that "keynesian" is not interchangable with 'government spending', right ?
Right behind you. It was a revival of one of the points of the Ricardo Malthus debates. It always helps to read the theories people have opinions about.
The idea that we can safely neglect the aggregate demand function is fundamental to the Ricardian economics,
which underlie what we have been taught for more than a century. Malthus, indeed, had vehemently opposed
Ricardo’s doctrine that it was impossible for elective demand to be deficient; but vainly. For, since Malthus was
unable to explain clearly (apart from an appeal to the facts of common observation) how and why effective demand
could be deficient or excessive, he failed to furnish an alternative construction; and Ricardo conquered England as
completely as the Holy Inquisition conquered Spain. Not only was his theory accepted by the city, by statesmen and
by the academic world. But controversy ceased; the other point of view completely disappeared; it ceased to be
discussed. The great puzzle of Effective Demand with which Malthus had wrestled vanished from economic
Highlighting of course the idea of too much "stimulus" .
Why should we suspect that Ricardo, a bank lobbyist, might hold finance as being innocent of impact? I believe we owe Keynes a good deal to question this idea which seems rather obvious to me. To appreciate that it does not mean you are for every pork barrel project that comes along.
Ironically both the Keynsians and the Austrians agree. Finance is out of control. Either one would have been preferable to the abomination we ended up with which lacked economic credit stimulus for the real goods and service economy or Austrian market discipline. We starved the real economy of credit in a most anti-Keynsian way and lavishly rewarded bankers in a market abomination to keep asset prices out of line with real value. We offended both Keynes and Rothbard simultaneously and that takes some doing.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Once the Economy was saturated with credit expansion, the mantra “deficits don’t matter” became popular.
