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...implying that the Keynesians are really empathetic and that the Chicago school folks are cold-hearted technocrats. That kind of emotionality is what keeps p
by zeroname 8y ago
...implying that the Keynesians are really empathetic and that the Chicago school folks are cold-hearted technocrats.
That kind of emotionality is what keeps people from making reasonable decisions on economic policy. It would be nice if the kind of naive Keynesianism that politicians love to apply actually worked. It would be nice if you could spend yourself out of a recession. Unfortunately, politicians only like the spending part of the equation, not the savings part.
It's important to note that the Chicago school does build on Keynesian insights. It's an attempt at improving upon its failures.
- AbrahamParangi 8y agoI’ll ignore the greentext style intro. I suspect that the truth of the matter is that conscientiousness varies across the human population and that the best analysis takes into account this fact. To ignore rational self interest is naive and plainly wrong- but it is also wrong to ignore the impact of high conscientiousness on decision-making. I say this without condoning or condemning either configuration.
- Tyrek 8y agoDo you mean the Keynesianism that is commonly applied, also known as 'let's increase spending on random shit that will benefit by stakeholders, but will have minimal impact on the overall health of the economy?'. Keynesians haven't been in a position to dictate fiscal policy (as opposed to monetary policy, aka the Fed) for at least the past 3 decades.