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Free-market austrian school is generally "hands-off, believe the price system". I've generally seen the "not enough" argument in conjunction with Keynesian "go
by kbutler 15y ago
Free-market austrian school is generally "hands-off, believe the price system".
I've generally seen the "not enough" argument in conjunction with Keynesian "government stimulus" (e.g., google "not enough stimulus" and the first half-dozen articles arguing that the recent $700B + stimulus was not big enough).
I haven't seen a similar corpus of arguments that the freenmarkets haven't worked because they weren't free enough. I think the chinese experiment opening up to capitalism is a great endorsement of additional freeing of markets "at the margin" increasing economic benefit.
- scrod 15y ago>I haven't seen a similar corpus of arguments that the freenmarkets haven't worked because they weren't free enough. Well, then I'm glad to find someone else who isn't under the impression that continuing and intensifying de-regulation and privatization will somehow solve our present economic crisis.
- kbutler 15y agoI should clarify: I think the "stimulus not big enough" argument is fallacious. I think that government spending substitutes for private spending, rather than stimulating it. (e.g., dollars the government spends on tanks are not spent on goods desired by consumers. It may stimulate economic activity, but it reduces aggregate well-being.)