tag:blogger.com,1999:blog-6276561747841568697.post2531218377914241144..comments2024-03-27T05:23:48.855-04:00Comments on Krugman-in-Wonderland: Does Unlimited Government Spending Bring Prosperity?William L. Andersonhttp://www.blogger.com/profile/01802990642236807359noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6276561747841568697.post-64352800830488167952010-07-03T01:28:07.636-04:002010-07-03T01:28:07.636-04:00The last 10 years have made it impossible for me t...The last 10 years have made it impossible for me to take any reference point as viable save for a birds eye view.<br /><br />Now given the fact that though 1) one might not know the cause one can still testify that they have stomach pain, 2) it's not only obvious that there is extreme tension in the imaginary global unified magic blob economy, but also 3) that those with wizard powers (thieving directors of Iceland's banks) will feast when the elephant rises and when it crashes, given these known and expected conditions it's time to stop playing this silly disjoint (faux synthesis) Hegelian game and admit we are either being pulled apart at both ends or crushed.<br /><br />Anyone arguing the finer points of one or the other is either a morbid opportunist or really not a serious contributor to the debate.<br /><br />Austerity and stimulus are crass code words for two sides of the same coin. Neither responsibility nor investment is associated with either of those words, at least what they mean in recent practice.<br /><br />Before I expose Kagan next week, I will take both the Mises corner and the Keynes corner to task though I'll probably land squarely in the Mises corner by the end.<br /><br />Enjoyed the blog so far.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-29312047049178286852010-06-17T17:17:06.039-04:002010-06-17T17:17:06.039-04:00Keynesians teach that the "aggregate supply&q...Keynesians teach that the "aggregate supply" curve is flat until the economy starts pushing toward the end of its "capacity." In other words, in the relatively early stages, the economy can expand without prices rising (when the government stimulates it through spending).<br /><br />That only can happen if opportunity cost takes a powder. Furthermore, the theory does not explain adequately WHY these resources are idle. It just states that people have stopped spending.William L. Andersonhttps://www.blogger.com/profile/01802990642236807359noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-68775312914538100302010-06-17T16:22:46.562-04:002010-06-17T16:22:46.562-04:00Daniel,
They may talk opportunity costs, but it i...Daniel,<br /><br />They may talk opportunity costs, but it is always done in that sort of quaint fashion in Keynesian economics where, somehow, there is this distinctive difference in macro and micro economics, that both are two mutually exclusive beasts and one can't impact the other. When it comes to individual businesses, Keynesians are more than willing to admit that resources are limited, obtaining more resources increases proportionately with the amount already held, and that the resources must be used in their most efficient method.<br /><br />However, once the system moves between a magical, undefined line between micro and macro, resources suddenly become unlimited. All we need to create total prosperity is run printing presses 24/7 and give away money. In Keynesian economics, opportunity costs simply do not apply to the macro system or to governments. Resources are infinite and opportunity costs are merely a problem when there are finite resources, but a non-issue to infinite resource creatures like government.<br /><br />The reality is that economics is only separated between macro and micro for the convenience of learning the system as a whole. There is no such thing as an operational micro system and macro system. There is just economics and opportunity costs apply no matter how big the component gets or what the identity of the actor is. Resources are finite, no matter how much money gets dumped into the system. Adding a new Dollar won't cause iron ore to pop into existence from nothing.<br /><br />Where Keynesian economics fails is that acting as if money itself is the source of all value and the only way to return prosperity is to maintain spending, no matter what, is that all it does is destroy the ability to notice the opportunity costs. When opportunity costs are ignored, resources are haphazardly utilized and, ultimately, everyone is worse off because we lost the important information (price fluctuation) that tells us when it's time to back off consumption and production of a particular good or service.<br /><br />You'll have to realize that, at the end of the day, Keynesian economics is just a group of quickly slapped together "hypotheses" that are carefully chosen not because it has any bearing in reality, but because it will benefit the individual proposing the system.<br /><br />All we have to do is ask a simple question. At what time in history has what Mr. Krugman (I refuse to call him a doctor, he didn't earn anything but a piece of paper) just proposed actually worked? The answer is never, which is why they always argue that it was never enough. And it will never work.Justin Murray, CFOhttps://www.blogger.com/profile/08281611095617021163noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-41494836657839364092010-06-17T15:37:43.847-04:002010-06-17T15:37:43.847-04:00*Frostburg*FrostburgDanielhttps://www.blogger.com/profile/17192667997950934790noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-53936873155794999772010-06-17T15:37:16.403-04:002010-06-17T15:37:16.403-04:00Could you explain what you mean by opportunity cos...Could you explain what you mean by opportunity cost being missing in Keynesian economics? That was integral in my education - how do they teach Keynesianism at Frostberg?Danielhttps://www.blogger.com/profile/17192667997950934790noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-51139712724614976932010-06-16T19:54:48.057-04:002010-06-16T19:54:48.057-04:00http://thomaspainereturns.net/posts/sdfr.html
Wit...http://thomaspainereturns.net/posts/sdfr.html<br /><br />With depression at the doorstep, it is time to fire the Federal Reserve. Western economies are on the brink of total collapse; only prompt, decisive and radical measures can prevent complete world economic ruin. Ironically, Russia and China are in a much better position to weather this up-coming storm than western countries.<br /><br />The American rescue plan plodded through Congress and the world was hopeful when the $700 billion package went through. Alas, any relief was very short-lived and the package sent the share markets into even more pronounced gyrations.<br /><br />Despite the whole rescue package being ill conceived, the pundits foolishly applauded the upward surge in the share markets. The recent rescue package was designed to give the ruling elite back money they used to artificially prop up the share markets. The package is a short-sighted, band-aid measure that helps secure the seats of incumbent politicians. But, the main beneficiaries of all these are the ruling elite and their Federal Reserve.<br /><br />The failed rescue package was immediately followed by piece-meal assistance for certain individual banks. This gave the market a temporary boost. Again, it was short-lived. These volatile market swings should offer no comfort to anyone except speculators, who are becoming richer at the expense of everyone else.<br /><br />The band aids will not help the economic crisis. There is a systemic problem. The Federal Reserve and all the central banks in the world that are designed on its model are defrauding the people of the world.These Are The Timeshttp://thomaspainereturns.net/posts/sdfr.htmlnoreply@blogger.com