Good quote.
I remember Nixon trying and failing to use govt. interference with the markets by slapping wage and price controls on certain industries.
I could be wrong, but I remember those attempts as failing to do much. It was the memory of this that modern day Republicans have used to adhere to a totally free market philosophy.
I didn't have a chance to respond to an earlier post of yours, but I wanted to say again that I'm just not and never will be an idealogue when it comes to economic matters and government responses to economic matters....not a Keynesian nor a supply-sider.
I think governments should avoid idealogy and make policy relative to the facts on the ground because each country, culture, and time period is unique. For ex., the economy of Japan is being impacted by its low birth rate and aged population. Economic policy decisions by its government must be tailored to this reality. OTOH, in a country like Haiti, nearly half the population is under the age of 16, and this would neccessitate different economic approachs.
Macroeconomic theory such as Keynes, Austrian, and whatever else is out there seems to me to be pretty useless when it comes to the actual governance of a particular economy. Microeconomics rule the day. A government that is NOT idealogically driven, that is flexible and nimble will, I believe, have better aggregate results. It takes smart people who can think outside the box, and this seems to be lacking in our elected officials. |
