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economics
Posted by James [Email] (more from James) on Thu, 8 Jul 2010 09:27:52
In Reply to: You can add, Tim, Wed, 7 Jul 2010 20:31:51
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it's been a while since I did economics, but I don't recall Keynes claiming things will only go up.
I always find it frustrating when people misuse Keynesian policy and possibly bash it on the basis of misuse... proper use calls for government spending in bad times + hoarding/debt reduction in good times. Canada has been fairly good at this for the past decade and a half + is reaping the rewards now. Otoh, other nations racked up debt in good times + now cite Keynes to suggest further racking up debt, but that's not how it works!! One has to hoard money in good times to pay for future stimulus!
I suppose the detractors of Keynes might say that with time lags etc, stimulus + drag might heighten economic peaks + valleys, but that hasn't been the case here. Timing is critical. Our current Conservative government almost dropped the ball on stimulus, delayed, probably overspent too late, but it still has been helpful here. My house has only increased in value over the past 10 years, in sharp contrast to what most have experienced in the US. Doesn't need to be perfect, just has to help. Imho, Keynes (done right) works... (in fact, works pretty well in business too)...
James...
posted by 67.158.7...
Posts in this Thread:
- Psychic moved in next door - do people really go!?, Craig, Tue, 6 Jul 2010 18:29:50
- Wow, tons of responses!, Craig, Thu, 8 Jul 2010 11:42:18
- I have a theory, TML , Wed, 7 Jul 2010 09:41:19
- Psychics are proof that some people, Noel, Wed, 7 Jul 2010 05:08:37
- Re: Psychic moved in next door - do people really go!?, Scott Paterson , Tue, 6 Jul 2010 19:58:48
- Re: Psychic moved in next door - do people really go!?, 93Gator, Tue, 6 Jul 2010 19:08:54
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