Keynesian Economics, a Critique
- 01-14-2009, 11:58 AM
- 01-14-2009, 04:01 PM
- 01-14-2009, 04:07 PM
01-14-2009, 05:06 PM
My specific question was: "Do you think its more detrimental to the economy to have government spend tax dollars on the economy in a reckless and haphazard manner, or have government not spend tax dollars on the economy at all?" I should have qualified the statement with:"during an economic downturn."
I don't think its a false dichotomy in this context because government spending during an economic downturn, though favored today, is by no means the only possible course of action. Governments still make the conscious decision to borrow and spend that money. Do you think its the right decision for governments to spend money in a downturn, if they they are spending it appropriately.
In that context, something about the US's economy is not ideal or someone fell asleep at the switch....In essence, I think an ideal political economy is one such that deregulation and capital expenditures work in concert with one another as a type of dual-predictive mechanism.
01-14-2009, 06:18 PM
I am pretty sure the latter caused the for former.In that context, something about the US's economy is not ideal or someone fell asleep at the switch....
01-15-2009, 12:52 AM
01-15-2009, 09:17 AM
Yes: The IS/LM Model.Does Keynes or any of his neo-classical synthesis friends ever propose a mechanism to properly moderate the spending?
Literally, that is what the IS/LM is: a predictive mechanism meant to increase or curtail government spending to avoid economic crises.
01-15-2009, 09:26 AM
01-15-2009, 09:28 AM
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