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It's also not really an accurate summary of the Keynesian view, which is a theory about the business cycle, i.e. short-run fluctuations in the economy. Capital
by QuesnayJr 6y ago
It's also not really an accurate summary of the Keynesian view, which is a theory about the business cycle, i.e. short-run fluctuations in the economy. Capital investment is important for the long run.
- Retric 6y agoNeither are particularly critical in the long term. Economics is bound by diminishing returns, which dampens extremes. Minimal investment results in extreme returns, where extreme investment results in minimal returns. As returns compound the difference shrinks over time. Really it’s mostly a question of short vs mid term results, in a world of feedback loops either can dominate.