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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (3216)	4/24/2001 11:57:00 AM
From: MeDroogies	Read Replies (1) \| Respond to of 74559

What is your criticism of Schumpeter? He tried to codify (within limits) the nature of business cycles and did a wonderful job of it. He put forth the first and still best, economist's definition of the entrepreneur and his role in the economy. He also made great strides in defining growth (from the point of view of an economy). I like the link to monad.com. Interesting. I'm more a practicalist than a pragmatist. Very fine lines of definition, one which I first picked up on when reading Ayn Rand. Pragmatists contextualize everything, including the political environment in which they are acting. Practicalists apply standard thought and practice in varying forms to meet varying contexts, with as little compromise as possible (and only when absolutely necessary). Pragmatists are more free-flowing, whereas practicalists look for common threads and try to intertwine them throughout situations. Schumpeter's view of the Depression (and mine, btw), is that it was necessary, and unavoidable. His point is that there are times when excesses are overwhelming and balance needs to be reinstated. He compared it to taking a cold shower. Left to their own devices, his work showed that imbalances will work themselves out quickly, but if there is too much fiddling with the system, a recession/depression can be delayed and extended (quite what happened due to Roosevelt's "efforts" - which were half-assed, at best). Keynes was used as the basis of the Roosevelt New Deal, but didn't really get put into practical effect until the war occurred. In all likelihood, had Roosevelt left things alone (had Taft/Hartley, Glass/Steagall not occurred, or the Fed not raised rates after the crash among all other things), things would have worked out quickly. However, the government got too involved at just the wrong time in just the wrong way.....