Keynesian or Monetorist??

[PLATO]

Originally posted by Kidicious
Let the right economists run the economy and Keynesian economics will work. Yeah, I know. That's not going to happen

So sadly true.

[HershOstropoler]

Originally posted by PLATO1003

For example, Keynes believed that there was no market mechanism to aleviate a long term depression.

So how come the depression of the late 19th century was overcome without deficit spending?

[Kidlicious]

Originally posted by HershOstropoler


So how come the depression of the late 19th century was overcome without deficit spending?

Just because it EVENTUALLY was overcome without stimulus doesn't mean there is a general tendency for it to do so. Sooner or later the economy will improve, but there is no tendency towards any time period.

[PLATO]

Originally posted by HershOstropoler


So how come the depression of the late 19th century was overcome without deficit spending?

The outcry for reform increased sharply after 1890. Members of the clergy, social workers, and others studied life in the slums and reported on the awful living conditions there. Educators criticized the nation's school system. Increasingly, unskilled workers resorted to strikes in an attempt to gain concessions from their employers. Often, violence broke out between strikers and strikebreakers hired by the employers. Socialists and others who opposed the U.S. economic system of capitalism supported the strikers and gained a large following.
As public support for reform grew, so did the political influence of the reformers. In 1891, farmers and some labourers formed the People's, or Populist, Party. The Populists called for government action to help farmers and labourers. They gained a large following, and convinced many Democrats and Republicans to support reforms.
Reformers won control of many city and some state governments. They also elected many people to Congress who favoured their views. In addition, the first three presidents elected after 1900--Theodore Roosevelt, William Howard Taft, and Woodrow Wilson--supported certain reform laws.
Local and state legislation. Reformers in local and state government passed many laws to help the poor. Such laws provided for tenement house inspection, playgrounds, and other improvements of life in the slums. Some reform governments expanded public education and forced employers to protect workers against fires and dangerous machinery in factories

Government revenues rose due to industrialization and increased efficiency. This prevented the need for deficit spending to support the reforms mentioned above. This does not negate the fact that government spending rose dramatically to end the depression.

Source: http://www.the-unitedstatesofamerica...rilazation.htm

[PLATO]

Originally posted by Kidicious


Just because it EVENTUALLY was overcome without stimulus doesn't mean there is a general tendency for it to do so. Sooner or later the economy will improve, but there is no tendency towards any time period.

Kidicious, Keynes was of the opinion that it may not eventually be overcome. Some type of intervention by government is necessary. The unusual event of industrialization and the "end of the frontier" (Which the US census made official in 1890) combined to allow the government to greatly increase spending without incurring a deficit.

[Maniac]

Keynesian of course.

Main_Brain:

Hayeck.

Why did you become member of the CCCP and why are you now member of the Drones in the ACDG when you're such an economic right-winger??

[TCO]

I am doing my presonal part to prime the pump. Is that adequate?

[Main_Brain]

Must be the same Reason why everyone takes the Germans in WWII Games ;=)

[Urban Ranger]

Originally posted by Main_Brain
Must be the same Reason why everyone takes the Germans in WWII Games ;=)

Not me.

[Ted Striker]

Nigga I just like to GET PAID

[Urban Ranger]

Originally posted by HershOstropoler
Not entirely, but before you ask how to handle the economy, the question is why handle it at all?

The flip side of the question is, why study economics if it is not to be used to aid the society? It's not like physics which helps us to understand nature better.

[Zero]

Originally posted by Urban Ranger


The flip side of the question is, why study economics if it is not to be used to aid the society? It's not like physics which helps us to understand nature better.

Because if you think you know how it works, you might be making bling bling fo sho!

[Sava]

I'm too ignorant to know those terms... I vote banana

[Urban Ranger]

Originally posted by Zero
Because if you think you know how it works, you might be making bling bling fo sho!

That's because people want economics to work for them, so they pay good money for economists. The assumption here is economy can be handled. If not, who wants economists?

[Zero]

my ww2 history professor is so keynesian. she wants to believe new deal was effective.

i dont think she heard of supply side economics