IMF: We were wrong about Keynesian Economics

[usmcstinger]

Don't know, your link is broken.

Fixed

The IMF Admits It Was Wrong About Keynesianism - Business Insider

Works fine for me. Bottom line: Obama's use of the Keynesian Economics Theory continues to be a complete failure. It has never worked at any time in history. I am waiting for some one to prove me wrong.

 

[Bombur]

Well what obviously isn't working is $trillions in Wall Street/Central Bank giveaways, zero interest rates, monthly $billions in bond buying and otherwise completely ignoring the middle class.
All we have done since the recession began is guarantee the profits of the investor class/central banks and super corporations. All are doing fantastically well.
Obama is THE single largest trickle-down economics President in history. And the Democrats love him. You just can't make this shit up.

Did i say anything about Obama? I said look at the data, if necessary hire as much super computing as needed, find what works and do that minus the unproductive fight over these two competing economic theories or bullshit politics. There is no need at this late date to still have such horrible disagreement over how to stabilize an economy. The only reason is that peroidic booms and busts help those who can somewhat manipulate the market. How can you buy low and sell high if all we have is boring slow but steady growth?

slow but steady growth????
Where have you been? Wall Street has had three record years since 2008. The top investor class has enjoyed an extraordinary 28% earnings increase...slow and steady...Jesus.
The top 7% earners have bathed in 28% earnings increase while the remaining 93% of the population has sucked on a 5% decrease.
The only "theory" that has existed for the past 6 years is the government enriching themselves and their corporate/investor friends.

The top 1% will always have large increases in income during a recovery. If you look at trends in income for the top 1% you will see that there are big swings up and down.

The market conditions that have lead to the weakening of the labor market go back decades and have little to do with the last 6 years.

 

[Bombur]

Don't know, your link is broken.

Fixed

The IMF Admits It Was Wrong About Keynesianism - Business Insider

Works fine for me. Bottom line: Obama's use of the Keynesian Economics Theory continues to be a complete failure. It has never worked at any time in history. I am waiting for some one to prove me wrong.

Your link is literally about comparing nations that used austerity to those that used Keynesian Economics and the nations that used austerity did worse.

Keynesian economics can't fix everything. It is really only a policy that can soften the blow. A fundamental weakness in the economy will not be cured by Keynesian economics.

 

[usmcstinger]

http://www.businessinsider.com/imf-admitted-their-economists-were-wrong-2013-1TheIMF

Use to be such a staunch supporter.

Has Keynesian Economics ever worked?

The economies of the West have been Keynesian economies since 1945.

So the answer appears, generally, to be "yes."

BTW, the link doesn't work.[/QUOTE
It works for me.

 

[bendog]

Well, there are two differing things going on. First, the IMF for several decades has focuses on nations getting their public debt in order before helping out. That is "anti-Keynsian," and is currently being reconsidered because, if the IMF causes a currency devaluation and an unemployment spike, it doesn't help with public debt. I think that's pretty much macroenomics that can be dealt with.

Microeconomics is more troublesome. How do you build a power grid in a third world country without Keynes? And, who in God's name would trust someone like Mugabe to build one? Paul Roemer has a thoroughly non-PC notion of basically using little economic empowerment zones (like Shanghi) with little to no regulatory interference to attract private investment to "build it from scratch."

 

[expat_panama]

"IMF: We were wrong about Keynesian Economics"

Here's the article you base that claim on:

The IMF Admits It Was Wrong About Keynesianism

In an important new study, Olivier Blanchard, the Chief Economist at the International Monetary Fund (IMF), has just admitted that having respected and accepted the advice of conservative economists has turned out to be a blunder.

The story you and Business Insider are pushing is that the IMF supposedly admitted Keynesianism is wrong --all based on a study that announced at the beginning that---

This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Business Insider lied about what the IMF said. Let's not let that lie stand.

 

[f252863]

All nations invest in education, science, infrastructure and r@D...The nations that don't are piss poor and are a dream to all conservatives!

And our investment in public education is something to be proud of?

Private schools are way ahead of public institutions.

 

[regent]

What is there besides Keynes? All these trickle-down plans, balance the budget and so forth haven't worked. Where we fail with Keynes is that the borrowed money is to be paid back in prosperity, but what politician would vote to pay back the borrowed money? So we end up with a form of Keynes.

 

[EdwardBaiamonte]

What is there besides Keynes? .

too stupid!! There is capitalism!! Welcome to your first lesson in economics!

 

[CrusaderFrank]

Obama killed our manned space program but spent over $1B developing the only web site that cant tell you when someone bought your product

 

[EdwardBaiamonte]

The economies of the West have been Keynesian economies since 1945.
So the answer appears, generally, to be "yes."

but can you imagine even one basis on which Keynesianism would be superior to capitalism? Care to share it?
In fact the economies of the West were held back not pushed forward by Keynes.

 

[regent]

Do both American political parties now use Keynes to respond to an economic slump? Has any other plan, other than Keynes, been even been used in the last thirty years?

 

[EdwardBaiamonte]

Do both American political parties now use Keynes to respond to an economic slump? Has any other plan, other than Keynes, been even been used in the last thirty years?

Republicans generally don't like Keynes thinking that Milton Friedman proved fiscal policy does not work to help an economy but rather hurts it. His proof is summarized on page 292 of The Monetary History of the United States.

 

[EdwardBaiamonte]

Has any other plan, other than Keynes, been even been used in the last thirty years?

yes, for example right now the plan is to let capitalism work to end the current recession. In general a recession occures during the time it takes an economy to recover from the liberal interference that caused the recession.
Our economy is struggling now because the liberal interference remains too great.
Do you understand?