<<Not sure what you disagree with>>>
This is what I disagree with:
You think that spending cuts somehow benefit the economy.
You think Keynesian economics is wrong.
I think Keynes was right.
I think like most economists (eg, Sachs, Stiglitz, Volcker, Bernanke, Krugman, and even Friedman who coined the phrase we are now all Keynesians) agree for the most part with Keynes.
We should spend on stimulating the economy to increase employment, create greater demand for products and services, and creating a bigger economy when large numbers of people are suffering, unemployed, and have difficulty feeding their families. However, the economy can not be artificially stimulated forever. At some point, when the recovery kicks in, spending is curtailed as more people are employed and paying more taxes whereby the deficit reduction becomes the primary focus. That is when mathematics become important as economists create and test mathematical models to find the optimal spending rate reduction.
Economics is a relatively new science so a lot of what we believe in now could ultimately be proven wrong.
But just as even much of medical practises employed today wil be proven wrong in the future (it has been said that nearly 70% of what they practise today will be considered rubbish sometime in the future), we still go see a doctor when we get sick. We don't seek poets and writers of fiction for treatment. |
