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I apologize ahead of time for going off topic but I have to argue against the bashing of Keynesianism that is getting so popular lately. Keynesian economics wo
by hristov 13y ago
I apologize ahead of time for going off topic but I have to argue against the bashing of Keynesianism that is getting so popular lately.
Keynesian economics works, and it is responsible for the longest and largest sustaining economic growth ever seen on this planet. It works, and moreover it is shown to be the only thing that works over a long period of time.
The fact that the competing theory is simpler does not mean that the competing theory works. Simplicity does not mean accuracy. Also expansion of the money supply does not necessarily mean inflation. Remember that the amount of goods and services produced in the world is also expanding.
- Groxx 13y agoThere's a difference between "works" and "has worked". And it hasn't existed for "a long period of time", just long when compared against the lifetime of modern economics. Which is not to say it's wrong. Merely that the world hasn't settled on Keynesianism as the One True Path™, and there exists no logical proof that it is successful, much less the only successful scheme, because you can't construct irrefutable proofs when you have to include human behavior. The bashing may be popular now, but Keynesianism has been popular for quite a while, during a period of great wealth increase (which you cannot attribute solely to it, for the same reasons you cannot prove it works), and I suspect it has blinded people to other possibilities. At least this gets people talking about it, and it has generally been civil as far as I have seen.
- dnautics 13y ago"Keynesian economics works" well, yes, if you call a increasing gap between the wealthy and the poor "work"ing.