Keynesian Economics RIP

[Mike Mitrosky]

Okay but given all that - the misery - don't you think the present economic system is flawed? I mean, if you were designing an economic system would you want in the specs that every few years it had to fail?

You are presuming that this system is designed. Rather, it is what naturally occurs when human beings are left to their own devices. The dynamics behind the business cycle can even be observed in tribal societies, causing migrations.

Further, if properly prepared for, recession is not failure. Investors and companies that plan for recessions often do very well. Recessions hurt because people tend to believe the good times will never end.


That said, every effort to socially engineer a better system has failed miserably. It has proven incredibly difficult to control the behavior of over 300 million human beings.

The money system is designed so. Ever since 1913.. Before that it wasnt. Every dollar created comes with 5 cents of interest that isnt created and so the only way to keep the system going is to continually increase the money supply. Its an unstable system

 

[mascale]

It is not correct to hypothesize "cycles" when in fact anyone has to do arithmetic.

Quote: Originally Posted by Diuretic

"Okay but given all that - the misery - don't you think the present economic system is flawed? I mean, if you were designing an economic system would you want in the specs that every few years it had to fail?"

"You are presuming that this system is designed. Rather, it is what naturally occurs when human beings are left to their own devices. The dynamics behind the business cycle can even be observed in tribal societies, causing migrations."

Mascale Says: Actually, humans do math, which is the substance of design. The math is on the currency, and in the accounting.

Further, if properly prepared for, recession is not failure. Investors and companies that plan for recessions often do very well. Recessions hurt because people tend to believe the good times will never end."

Mascale Says: Failure is created in the arithmetic of income distribution. More getting more, and less getting less than enough, is intended failure, designed with intent to kill--deny goods and services to humans.

"That said, every effort to socially engineer a better system has failed miserably. It has proven incredibly difficult to control the behavior of over 300 million human beings."

Mascale Says: See "Mascale Says!"

"Crow, James Crow: Shaken Not Stirred!"
(Mascale Is Not Very Complex!)
__________________

 

[Neubarth]

1. Unemployment Insurance.
2. Savings
3. Food Stamps
4. Charity
5. Theft

Okay but in a time of recession or depression isn't the public mood a bit gloomy?
What tides the economy over until the recession/depression finishes and the entrepreneurs can get going again?

Unemployment insurance.
Savings.
Soup kitchens.
Temp work.

In short, people "make do" with what they have, until the economy recovers. Yes, it is unpleasant, but we've survived recessions before without massive government interventions. And recession is always followed by a boom.

Necessity is the mother of invention, or so they say.

Okay but given all that - the misery - don't you think the present economic system is flawed? I mean, if you were designing an economic system would you want in the specs that every few years it had to fail?

 

[Diuretic]

Okay but given all that - the misery - don't you think the present economic system is flawed? I mean, if you were designing an economic system would you want in the specs that every few years it had to fail?

You are presuming that this system is designed. Rather, it is what naturally occurs when human beings are left to their own devices. The dynamics behind the business cycle can even be observed in tribal societies, causing migrations.

Further, if properly prepared for, recession is not failure. Investors and companies that plan for recessions often do very well. Recessions hurt because people tend to believe the good times will never end.


That said, every effort to socially engineer a better system has failed miserably. It has proven incredibly difficult to control the behavior of over 300 million human beings.

Nothing natural about it. Slavery used to be natural for some economies then it was done away with. Feudalism was natural for some economies as well, under the assumption that the Monarch was entitled to rule absolutely because God said so. That's pretty much gone except for one or two holdouts. Capitalism was invented and developed and did a lot of good but caused a lot of misery, especially in its earliest days. The current model is a far cry from that critiqued by Marx and Engels. But it's still social engineering - any economy above subsistence is invented by humans, engineered in some way. I suspect that it may be broken now, not totally, but given the fact that natural resources are limited and our world population keeps growing, there has to be some more social engineering of the world's economy to keep it working.

 

[mascale]

Water Just Keeps On Being Water, and there may even be some on the moon. Energy just keeps on being energy, and there may be some in the sun. Matter just keeps on being matter, and there may even be some, here on earth.

A woman once said, "I could never be proud of America, until now!"

Some people are simply not very good with large amounts of money.

"Crow, James Crow: Shaken, Not Stirred!"
(Surely the U. S. dollar is no longer regarded a scarce resource!)

 

[Neubarth]

Okay but given all that - the misery - don't you think the present economic system is flawed? I mean, if you were designing an economic system would you want in the specs that every few years it had to fail?

You are presuming that this system is designed. Rather, it is what naturally occurs when human beings are left to their own devices. The dynamics behind the business cycle can even be observed in tribal societies, causing migrations.

Further, if properly prepared for, recession is not failure. Investors and companies that plan for recessions often do very well. Recessions hurt because people tend to believe the good times will never end.


That said, every effort to socially engineer a better system has failed miserably. It has proven incredibly difficult to control the behavior of over 300 million human beings.

The money system is designed so. Ever since 1913.. Before that it wasnt. Every dollar created comes with 5 cents of interest that isnt created and so the only way to keep the system going is to continually increase the money supply. Its an unstable system

Though flawed, it is, so far, the best system we have devised in this evolution of man and his "systems" to make the world run better. The second best is barter. The most seriously flawed was the Gold Standard.

 

[Mike Mitrosky]

You are presuming that this system is designed. Rather, it is what naturally occurs when human beings are left to their own devices. The dynamics behind the business cycle can even be observed in tribal societies, causing migrations.

Further, if properly prepared for, recession is not failure. Investors and companies that plan for recessions often do very well. Recessions hurt because people tend to believe the good times will never end.


That said, every effort to socially engineer a better system has failed miserably. It has proven incredibly difficult to control the behavior of over 300 million human beings.

The money system is designed so. Ever since 1913.. Before that it wasnt. Every dollar created comes with 5 cents of interest that isnt created and so the only way to keep the system going is to continually increase the money supply. Its an unstable system

Though flawed, it is, so far, the best system we have devised in this evolution of man and his "systems" to make the world run better. The second best is barter. The most seriously flawed was the Gold Standard.

I would feel better if we had a fiat system that was just based on debt-free currency issuance rather than this debt-money we currently use. At least we wouldnt be indebted to a bunch of bankers/

 

[Neubarth]

The money system is designed so. Ever since 1913.. Before that it wasnt. Every dollar created comes with 5 cents of interest that isnt created and so the only way to keep the system going is to continually increase the money supply. Its an unstable system

Though flawed, it is, so far, the best system we have devised in this evolution of man and his "systems" to make the world run better. The second best is barter. The most seriously flawed was the Gold Standard.

I would feel better if we had a fiat system that was just based on debt-free currency issuance rather than this debt-money we currently use. At least we wouldnt be indebted to a bunch of bankers/

Indeed there podner, if the Fed was totally independent from the Big East Coast Banks, we would have a financial system that would work to our advantage.