The Problem With keynesian economics

Discussion in 'Economy' started by Charles_Main, Jun 3, 2012.

  1. Charles_Main
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    Charles_Main AR15 Owner

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    The Basic Premise of Keynesian economics is that you Spend money when the Economy is Down to Stimulate it, Then Make cuts when the Economy is up.

    It's 2 Sides of a Coin. The Problem is the Keynesian are only Keynesian when the Economy is down. When it is Up they forget about the Rules of Keynesian Economics and Continue to Spend more than we have instead of Making cuts.

    We never cut
     
  2. Quantum Windbag
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    Quantum Windbag Gold Member

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    That isn't the only problem, they also forget that Keynes was pretty adamant that government spending in and of itself was not going to grow the economy. He clearly advocated that spending be targeted to the area of the economy that needed help. The real reason the stimulus failed is the money went to prop up state budgets instead of being spent in a way that would have helped.
     
  3. Joe Steel
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    Joe Steel Class Warrior

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    Why do you continue to wallow in this nonsense? Do you get some kind of perverse pleasure from being wrong?

    The stimulus was not a failure. It saved jobs and kept the economy from total collapse.
     
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  4. Quantum Windbag
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    Quantum Windbag Gold Member

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    Sure it did, and you can prove this by pointing to all the times the economy failed after a crash where there was no stimulus.

    Or can you?
     
  5. CrusaderFrank
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    CrusaderFrank Diamond Member

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    I have a suspicious that Obama thought he was implementing Kenyan economics and not Keynesian
     
  6. Claudette
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    Claudette Gold Member

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    Too bad Coolidge isn't around. He could set Steely Boy straight on what to do during a recession.

    Roaring twenties anyone??
     
  7. Polk
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    Polk Classic

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    I don't see why you draw that conclusion from Keynes. While he did think targeting money at certain areas was optimal, there is also the famous example of paying people to dig holes.
     
  8. Polk
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    Polk Classic

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    That's not a problem with Keynesian theory. That's a problem with the people in charge of implementing policy.
     
  9. Dr.Drock
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    Dr.Drock Senior Member

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    If I told you I was a democrat and one of my talking points was if guys named Joe Steel empty their bank account into mine i'll save half the world's children from eventual starvation would you oblige?
     
  10. Quantum Windbag
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    Quantum Windbag Gold Member

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    Except, as usual, he is being misrepresented. What he actually said was.

    Not even close to what you thought he said, is it?
     

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