The Keynesian Vacuum Univese

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ashvinp's picture
ashvinp
Status: Gold Member (Offline)
Joined: Jan 20 2010
Posts: 412
The Keynesian Vacuum Univese

A very short post discussing the current Administration's Neo-Keynesian economic policies, which they appear to believe are unsusceptible to external influences or unintended consequences.

Quote:

     If only we existed in a Keynesian vacuum universe, then the current Administration's economic policies may have actually succeeded in fixing the ailing, debt-ridden economy! Here are some of the reasons why:

-   Swapping bad private debt for public debt would not negatively affect the sovereign bond market in any meaninful way, since all public creditors would realize that it is just a temporary measure to clean up balance sheets and restart economic growth. The prior value of that bad debt would eventually be restored, and it would be repurchased by private actors. The taxpayers would recover all of their money, or maybe even make a small profit.

Full piece - http://peakcomplexity.blogspot.com/2010/11/keynesian-vacuum-universe.html

TommyHolly's picture
TommyHolly
Status: Bronze Member (Offline)
Joined: Nov 9 2010
Posts: 90
Re: The Keynesian Vacuum Univese

Keynesian economic policies are the same ones tried by every Marxist country in the past.  They have horribly failed each and every time they've been tried throughout history.

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