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semantics?
Posted by James (more from James) on Sun, 8 May 2011 09:46:50
In Reply to: Re: I'm not for volatility either, Reality, Sat, 7 May 2011 21:45:43

we haven't really gotten past my point in "Keynes vs Keynes". You seem fixated on historical detail from Keynes. I am using the word "Keynes" to represent what modern macroeconomics took away from Keynes. I don't actually care much about his personal failings in the stock market or some of his other failings (eg whether or not he advocated printing money, which I agree, is a very weak monetary tool). I care about what is useful in the modern world.

Modern macro focuses on Keynesian fiscal policy: variation in taxes or expenditures to soften oscillations in the economy. Not printing money. There is a widespread recognition by economists of a policy trap associated with annually balanced budgets. Canada had a government that attempted to do this in the great depression actually, and fell into the trap (cutting expenditures + raising taxes in a recession in a vain attempt to balance the budget, resulting in further deficits + negative economic impact due to high taxes + low industrial stimulus). Similarly low taxes + high stimulus in a boom causes a bubble. When I refer to Keynes, I refer to the recognition that cyclical balanced budgets vs annually balanced budgets are better for the economy. Structural deficits (like you have had for a while in the USA and we may now have in Canada) are bad for everyone!

Keynesian policy (as I describe it above) can be executed purely on the basis of time variable tax rate, but the only problem with that is lag: it can be faster to push through stimulus than for tax changes to influence the economy... though I'm sure there is a way to modernize that! Taxation is in some sense fairer as it is not industry specific (as stimulation often is)... though in some sense there may be instances where industry specific or regional specific stimulation is helpful... that is debatable of course!

For you, all of this is moot: if one has the objective of diminishingly low taxes and services (ie virtually zero: the libertarian utopia), the power of any government fiscal policy is greatly reduced. Everyone is on their own, Darwin is at work, and fair enough... but that is an ideological debate, not an economic one...

I in no way wish for a "benevolent dictator"! my only "idealistic wish" is that the populace was well enough educated to understand the impacts of policy decisions... so much of it is just a popularity contest (like choosing a class prez in high school!)...

James...

posted by 67.158.68...

Posts in this Thread:

Car company bailouts, No Snaab , Thu, 5 May 2011 13:19:51
- GM to add 4,000 jobs, duking it out with Toyota, No Snaab , Wed, 11 May 2011 07:58:09
- Important to see the big picture, Noel , Fri, 6 May 2011 06:16:54
  - Doubly Ironic, Reality, Fri, 6 May 2011 07:00:56
    - So why don't you tell us, Noel , Fri, 6 May 2011 09:45:54
      - He doesn't deal in "reality", No Snaab , Fri, 6 May 2011 11:17:12
        Keynes himself said that, Reality, Fri, 6 May 2011 12:00:56
      - Re: So why don't you tell us, Reality, Fri, 6 May 2011 10:46:21
        You didn't answer the questions, Noel , Fri, 6 May 2011 11:17:54
        Re: You didn't answer the questions, Reality, Fri, 6 May 2011 11:43:04
        Re: You (still) didn't answer the questions, Noel , Fri, 6 May 2011 12:49:13
        He won't answer, No Snaab , Fri, 6 May 2011 14:12:45
        What is Heaven like?, Reality, Fri, 6 May 2011 15:04:00
        less vs more vs balance, James, Fri, 6 May 2011 15:31:40
        Balance is okay, Reality, Fri, 6 May 2011 16:10:30
        What color is the sky in your world?, Noel , Fri, 6 May 2011 16:24:48
        Blue, Black, Grey, White, Orange, Pink, Red,, Reality, Fri, 6 May 2011 16:46:55
        So without the government stepping in, Noel , Fri, 6 May 2011 19:55:24
        We would be in much better shape by now, Reality, Fri, 6 May 2011 20:27:54
        Re: Blue, Black, Grey, White, Orange, Pink, Red,, James, Fri, 6 May 2011 18:11:52
        I'm not for volatility either, Reality, Fri, 6 May 2011 19:35:21
        I should add..., James, Sat, 7 May 2011 04:40:15
        Re: I'm not for volatility either, James, Sat, 7 May 2011 04:04:04
        minor recant, James, Mon, 9 May 2011 19:04:53
        One Step At a Time, Reality, Tue, 10 May 2011 05:58:19
        Re: One Step At a Time, James, Tue, 10 May 2011 12:50:37
        Re: One Step At a Time, Reality, Wed, 11 May 2011 05:01:57
        Re: One Step At a Time, James, Wed, 11 May 2011 11:49:35
        Re: I'm not for volatility either, Reality, Sat, 7 May 2011 05:08:10
        Re: I'm not for volatility either, James, Sat, 7 May 2011 11:36:57
        Re: I'm not for volatility either, Reality, Sat, 7 May 2011 21:45:43
        semantics?, James, Sun, 8 May 2011 09:46:50
        Personal wishful thinking vs. Reality, Reality, Sun, 8 May 2011 12:36:19
        Re: Personal wishful thinking vs. Reality, James, Sun, 8 May 2011 19:25:47
        Re: Personal wishful thinking vs. Reality, Reality, Sun, 8 May 2011 20:18:38
        Re: Personal wishful thinking vs. Reality, James, Mon, 9 May 2011 08:09:19
        Re: Personal wishful thinking vs. Reality, Reality, Mon, 9 May 2011 09:34:24
        Re: Personal wishful thinking vs. Reality, Reality, Mon, 9 May 2011 09:30:05
        circles..., James, Mon, 9 May 2011 10:37:56
        Re: circles..., Reality, Mon, 9 May 2011 11:08:47
        Re: circles..., James, Mon, 9 May 2011 14:04:20
        Re: circles..., Reality, Mon, 9 May 2011 15:47:09
        Re: circles..., James, Mon, 9 May 2011 19:17:11
        Re: circles..., Reality, Tue, 10 May 2011 06:00:59
        Does this hold some record for, Noel , Wed, 11 May 2011 05:32:21
        False Choice, Reality, Fri, 6 May 2011 13:33:38
        Re: False Choice, William, Sat, 7 May 2011 04:14:48
      - Re: So why don't you tell us...Been there done that an, Joeychess, Fri, 6 May 2011 10:22:45
    - That's fiscally responsible and also well stated yet, Joeychess, Fri, 6 May 2011 08:19:33
  - Re: Important to see the big picture...Well said n/m, Joeychess, Fri, 6 May 2011 06:22:03
- Don't kid yourself, BTG88, Thu, 5 May 2011 21:59:15
- Gov't role in today's economy, adl6009, Thu, 5 May 2011 19:17:20
  - Re: Gov't role in today's economy, Reality, Thu, 5 May 2011 19:24:31
- Ironic timing, "new" GM is caught stuffing channel, Reality, Thu, 5 May 2011 13:41:26
  - Macro econ. vs the guy at the plant, AlS , Thu, 5 May 2011 18:16:21
    - Keynesianism is Macro Econ, duh!, Reality, Thu, 5 May 2011 18:27:34
      - "I address car topics under a different user name.", Steve T., Fri, 6 May 2011 08:02:22
        Re: "I address car topics under a different user name.", Reality, Fri, 6 May 2011 08:25:24
        Re: "I address car topics under a different user name.", James, Fri, 6 May 2011 08:33:49
        Thank you, Reality, Fri, 6 May 2011 08:54:24
        Re: Thank you...I dig your verbosity. Hammer away!, Joeychess, Fri, 6 May 2011 09:01:34
      - Keynes vs. Keynes..., James, Fri, 6 May 2011 06:49:05
        Re: Keynes vs. Keynes..., Reality, Fri, 6 May 2011 07:28:58
        Re: Keynes vs. Keynes..., James, Fri, 6 May 2011 08:21:48
        Re: Keynes vs. Keynes..., Reality, Fri, 6 May 2011 09:03:54
        Re: Keynes vs. Keynes..., James, Fri, 6 May 2011 09:46:00
        Re: Keynes vs. Keynes..., Reality, Fri, 6 May 2011 11:27:37
        Re: Keynes vs. Keynes... Pursuit of happiness..., Joeychess, Fri, 6 May 2011 11:57:31
        The good news, Reality, Fri, 6 May 2011 12:32:40
        Correct my friend. Down with the intermediaries! n/m, Joeychess, Fri, 6 May 2011 14:01:32
      - Re: Keynesianism is Macro Econ, duh!, kkelley, Thu, 5 May 2011 20:37:44
        Re: Keynesianism is Macro Econ, duh!, Reality, Thu, 5 May 2011 20:47:01
  - Apparently stuffing the distribution channel works, Paul B., Thu, 5 May 2011 16:33:57
    - That's also called cooking the books, Reality, Thu, 5 May 2011 18:28:21
  - Re: Ironic timing, "new" GM is caught stuffing channel, kkelley, Thu, 5 May 2011 14:50:16
    - Re: Ironic timing, "new" GM is caught stuffing channel, Reality, Thu, 5 May 2011 15:20:56
      - Re: Ironic timing, "new" GM is caught stuffing channel, James, Fri, 6 May 2011 06:58:36
        Re: Ironic timing, "new" GM is caught stuffing channel, Reality, Fri, 6 May 2011 07:43:16
      - Re: Ironic timing, "new" GM is caught stuffing channel, kkelley, Thu, 5 May 2011 20:33:17
        Re: Ironic timing, "new" GM is caught stuffing channel, Reality, Thu, 5 May 2011 20:52:20
        Re: Ironic timing, "new" GM is caught stuffing channel, kkelley, Fri, 6 May 2011 10:59:29
        Re: Ironic timing, "new" GM is caught stuffing channel, Reality, Sat, 7 May 2011 04:47:06
        Banking Blahs...I am shocked at the miniscule rates, Joeychess, Sat, 7 May 2011 06:41:49
        Banking was an honorable profession, Reality, Sat, 7 May 2011 09:06:43

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