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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (258296)	7/3/2010 12:44:34 PM
From: koan	Read Replies (4) \| Respond to of 306849

Krugman and stiglitz won the nobel prize for economics and Stiglitz is the most referenced economist in the world. They might have some idea of what they speak. After the 1929 crash Hoover, did what you are suggesting and did little to help the depression. People were starving, kids were starving and had no place to live. Unemployment rose to 25%, shanty towns like Hooverville developed. Hoover's people said, let the depression run (what you are advocating I think) "it will get rid of the dead wood". That is why Hoover met with a huge defeat by FDR and FDR won four elections. FDR was seen by the rich as traitor to his class and was called a socialist. The Republican's hated social security, Glass Steagal and bills favoring unions. The right wing led by the Duponts, etc, actually tried to overthrow FDR and set up a fascist government, but were stopped by a famous general and the congress after he informed them of the plot. One can never let children starve based on a theory. That is just plain nuts. Keynes was considered the equal to Einstein and Russell in brains and brought in to try and figure out the problem. FDR was a little slow to implememnt his ideas, but once he did things started getting better. In the infamous 1937 decision, the Republican's convinced FDR to pull back (like what is going on now) and the depression resumed (like what is looking to happen now). Then in 1938 they went back to Keynes ideas and things got better until the full employment of WWII and the depression ended. From Wikipedia, the free encyclopedia "Keynesian economics (pronounced /'ke?nzi?n/, also called Keynesianism and Keynesian theory) is a macroeconomic theory based on the ideas of 20th century British economist John Maynard Keynes. Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and therefore, advocates active policy responses by the public sector, including monetary policy actions by the central bank and fiscal policy actions by the government to stabilize output over the business cycle.[1] The theories forming the basis of Keynesian economics were first presented in The General Theory of Employment, Interest and Money, published in 1936; the interpretations of Keynes are contentious, and several schools of thought claim his legacy. Keynesian economics advocates a mixed economy—predominantly private sector, but with a large role of government and public sector—and served as the economic model during the latter part of the Great Depression, World War II, and the post-war economic expansion (1945–1973), though it lost some influence following the stagflation of the 1970s. The advent of the global financial crisis in 2007 has caused a resurgence in Keynesian thought. The former British Prime Minister Gordon Brown, President of the United States Barack Obama, and other world leaders have used Keynesian economics to justify government stimulus programs for their economies.[2]