Quote:
Originally Posted by ratbastid
You should go study Keynesian economics and the tradition of economic theory both for and against Keynes over the last seventy years or so, and see if you still think the above paragraph holds water. I believe, if you engage honestly with the literature, you'll see it doesn't.
There are very good reasons nations don't try to spend their way out of recession. There are also very good reasons why it could work. It's nowhere NEAR as cut-and-dried as you make it out to be.
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O.k., I simply don't get it then. If government spending is the key to job creation why doen't it work? Has it worked in California? Did it work in the USSR? Did it work in Cuba? Did it work during the Great Depression? Hey, perhaps we figured it out. Perhaps government creates jobs by going to war, like in WWII. I guess it goes to the question is being a soldier a job, or an adventure?
-----Added 9/2/2009 at 02 : 14 : 25-----
Quote:
Originally Posted by roachboy
your basic position, ace, is that there is no crisis in the economy, that the jamming up of credit, the ramifications of that, the spiking of the unemployment rate, etc etc etc are all normal. so you don't need to think real hard, much less question your assumptions about neoliberal dogma, to continue acting as though your positions make sense.
everything follows from that.
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My basic position is we are in a recession. I think it is generally a normal recession combined with the complexity of a concurrent global recession. I think the market has to make adjustments for some recent excesses, namely the real estate correction and consumption based on false or inflated housing values. I think this adjustment will work through the system, will be painful, will happen regardless of government. Hardly "neoliberal dogma", more of an evaluation of past business cycles and how they compare to current conditions. I hardly believe you or many others really believe that if the government fails to pass a $1 trillion spending bill within the next few days we are going to go into a depression similar to the Great Depression.
Here is my hero: