Mish's Global Economic Trend Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: mishedlo who wrote (35707)	8/22/2005 6:12:28 PM
From: CalculatedRisk	Read Replies (3) of 116555

OK, I'll step up and defend Keynes (especially since he was correct). Keynes was exaggerating for effect. At the time, unemployment was 25%+ (remember he wrote that during the Great Depression). He was arguing for useful fiscal stimulus and then argued even a useless public works project (like filling old bottles with notes) would be better than doing nothing. Most people don't appreciate what the Depression was really like. At the time there were no safety nets. I repeat: a useless public works project would be better than nothing. Comparing Keynes exaggeration of how to stimulate the economy to the "broken window" theory is lunacy. One is intended to spur fiscal stimulus (correctly), the other is bad economics.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next