Keynes was wrong...

[Lukey]

The long run is here and we aren't all dead.

http://www.marketwatch.com/story/government-debt-is-the-new-subprime-2016-02-26

Just dead broke. The truth is that you simply cannot borrow and spend your way to prosperity. Thatcher was right - eventually you run out of other people's money. Governments around the world, in aggregate, are deeper in debt than ever before in history. Yet the GDP growth Keynes promised us from "pump priming" deficit spending is nowhere in sight. Deflation stalks the world economy due to all the fake growth this massive deficit spending has engendered, as capacity that was brought about by all that debt fueled (artificial) "aggregate demand" furiously churns out supply and feeds into a flagging global economy. Central planning is a one-way ticket to an economic dead end. It's really not rocket science, folks...

 

[justoffal]

The long run is here and we aren't all dead.

http://www.marketwatch.com/story/government-debt-is-the-new-subprime-2016-02-26

Just dead broke. The truth is that you simply cannot borrow and spend your way to prosperity. Thatcher was right - eventually you run out of other people's money. Governments around the world, in aggregate, are deeper in debt than ever before in history. Yet the GDP growth Keynes promised us from "pump priming" deficit spending is nowhere in sight. Deflation stalks the world economy due to all the fake growth this massive deficit spending has engendered, as capacity that was brought about by all that debt fueled (artificial) "aggregate demand" furiously churns out supply and feeds into a flagging global economy. Central planning is a one-way ticket to an economic dead end. It's really not rocket science, folks...

EXCELLENT...

Remember that Lord John's abiding interest in economic re-structuring was to support the idea in the following statement.

" In Tunis bed and boy can be had cheaply "....



JO

 

[justoffal]

The long run is here and we aren't all dead.

http://www.marketwatch.com/story/government-debt-is-the-new-subprime-2016-02-26

Just dead broke. The truth is that you simply cannot borrow and spend your way to prosperity. Thatcher was right - eventually you run out of other people's money. Governments around the world, in aggregate, are deeper in debt than ever before in history. Yet the GDP growth Keynes promised us from "pump priming" deficit spending is nowhere in sight. Deflation stalks the world economy due to all the fake growth this massive deficit spending has engendered, as capacity that was brought about by all that debt fueled (artificial) "aggregate demand" furiously churns out supply and feeds into a flagging global economy. Central planning is a one-way ticket to an economic dead end. It's really not rocket science, folks...

China tried this shit.....all they got out of it is a mainland full of warehoused goods .....some say it's up to a 40 year backlog.... that's what their false economy has harvested for them. Now they are choking on it....and the world is going down with them.

JO

 

[Lukey]

EXCELLENT...

Remember that Lord John's abiding interest in economic re-structuring was to support the idea in the following statement.

" In Tunis bed and boy can be had cheaply "....



JO

He was insane. The idea that the world is following his theories down the rat hole calls into question the world's collective sanity.

 

[Lukey]

China tried this shit.....all they got out of it is a mainland full of warehoused goods .....some say it's up to a 40 year backlog.... that's what their false economy has harvested for them. Now they are choking on it....and the world is going down with them.

JO

Yes, but. That's the symptom. The Fed is the cause (through the debacle that was the Euro-dollar).

http://www.alhambrapartners.com/2015/06/08/the-global-downside-to-eurodollar-decay/

When you turn the world's reserve currency into fiat paper, don't be surprised when the world gorges (and then chokes to death) on the "free money" it engenders.

 

[Rouge Rover]

Was Keynes wrong or were the people who only paid attention to the borrow and spend part wrong? Didn't Keynes also say there should be austerity in good times?

 

[Lukey]

Was Keynes wrong or were the people who only paid attention to the borrow and spend part wrong? Didn't Keynes also say there should be austerity in good times?

Yes, and Barack Obama also said he "actually believes in markets." Most Marxists who are masquerading as capitalists will say stuff like that to cover their tracks. The bulk of his work was on the subjects of government spending and market interference/control. Keynes was (basically) a redistributionist so while he mentioned the "counter cyclicity" of austerity in upturns, he was really selling central economic planning that was aimed at countering free market capitalism. The simple fact that he was discounting the effect of his policies on the "long run" economic outcome was a typical Marxist "focus on the seen, not the unseen" ploy which makes their bad policy look good (by placing emphasis on the here and now and not the future).

 

[Rouge Rover]

Yes, and Barack Obama also said he "actually believes in markets." Most Marxists who are masquerading as capitalists will say stuff like that to cover their tracks. The bulk of his work was on the subjects of government spending and market interference/control. Keynes was (basically) a redistributionist so while he mentioned the "counter cyclicity" of austerity in upturns, he was really selling central economic planning that was aimed at countering free market capitalism. The simple fact that he was discounting the effect of his policies on the "long run" economic outcome was a typical Marxist "focus on the seen, not the unseen" ploy which makes their bad policy look good (by placing emphasis on the here and now and not the future).

I'm not an economist but from what I remember reading about Keynes his main point was that demand leads to supply not the other way around in some situations. How much of this was Keynes and how much was other people using Keynes's name to sell ideas he may not have agreed with in much the same way Marx's name has been used to support ideas that weren't his?

 

[Lukey]

I'm not an economist but from what I remember reading about Keynes his main point was that demand leads to supply not the other way around in some situations. How much of this was Keynes and how much was other people using Keynes's name to sell ideas he may not have agreed with in much the same way Marx's name has been used to support ideas that weren't his?

Exactly correct. A "demand side" approach, which is crypto-Marxism (or conversely anti-capitalism). He was definitely a "fellow traveler."

And that's why he's so completely wrong. Say's Law:

http://www.investopedia.com/terms/s/says-law.asp

Has been proved correct again and again and again - most recently over the past decade. But pols favor Keynes over Say because it inflates their role in the economy (and bestows upon them huge, but undeserved, powers through the appropriations and regulatory role).

 

[Rouge Rover]

Exactly correct. A "demand side" approach, which is crypto-Marxism (or conversely anti-capitalism). He was definitely a "fellow traveler."

And that's why he's so completely wrong. Say's Law:

http://www.investopedia.com/terms/s/says-law.asp

Has been proved correct again and again and again - most recently over the past decade. But pols favor Keynes over Say because it inflates their role in the economy (and bestows upon them huge, but undeserved, powers through the appropriations and regulatory role).

This is from your link about Say's Law:

Say's Law is frequently misinterpreted as "supply creates its own demand," which is evidently false. If it were true, anyone could do whatever they wanted for a living and be successful at it.

I think the GOP has been guilty of this misinterpretation in the past. The last time I read an Economics book was 1991 so I'll have to take your word on Keynes but I wonder how much of this is really on Keynes, there are recent examples of politicians and policy makers misinterpreting things like Says Law and the Laffer Curve but that doesn't that Say or Laffer were wrong.

 

[Lukey]

This is from your link about Say's Law:



I think the GOP has been guilty of this misinterpretation in the past. The last time I read an Economics book was 1991 so I'll have to take your word on Keynes but I wonder how much of this is really on Keynes, there are recent examples of politicians and policy makers misinterpreting things like Says Law and the Laffer Curve but that doesn't that Say or Laffer were wrong.

Yes, I'm aware of what Say's Law actually says - that you cannot consume (anything) without first producing (something) that someone else wants so you have the EARNINGS to pay for it. Otherwise you're pushing a credit based economy, which, if you look around right now, you might notice isn't working for us so well.

True enough on the politician's (and policy professionals') efforts to distort economic theory to their own benefits. There's only two economists you really need to understand exactly how an economy functions. Jean Baptist Say (Say's Law) is one and the other is Frederic Bastiat (broken window fallacy). If you understand those two simple rules, you will never go wrong on economic policy.