Keynesian Economics

lifegoesonbrah

lifegoesonbrah

Well-Known Member
Keynesian Thought

GDP = success
GDP= consumption + investment + Government spending
------------------------------------------------------------

Failed realization that government spending takes away from consumption and investment. Priceless.

Philosophical fail.
 
NLXSK1

NLXSK1

Well-Known Member
Kenesian Economics was based on an economy not already in debt and for short term stimulus.

It doesnt work in all situations. It probably doesnt work in most situations.
 
UncleBuck

UncleBuck

Well-Known Member
NLXSK1 said:
Kenesian Economics was based on an economy not already in debt and for short term stimulus.

It doesnt work in all situations. It probably doesnt work in most situations.
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what is this reasonable, tempered nature to your comments?

be meaner and more partisan now, sir.
 
lifegoesonbrah

lifegoesonbrah

Well-Known Member
NLXSK1 said:
Kenesian Economics was based on an economy not already in debt and for short term stimulus.

It doesnt work in all situations. It probably doesnt work in most situations.
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Unfortunately they teach this shit as being standard economic principle.
 
ThatGuy113

ThatGuy113

Well-Known Member
Looks like I got someone riled up enough to post. It may be outdated and inefficient but it is how the world works today. You have to work within the system to create change. Not understanding the current system hinders the ability to even fathom realistic actions for change. Sadly a lot of people neglect to learn basic economic theory but somehow want to fix the economy with knee jerk reactions that sound good in the ears of a party's base.

Increasing fed debt during hard economic times to stimulate the economy and Reducing the fed debt during times of prosperity.
That is the basic theory. Not just increasing spending 24/7. The fact is that true Keynesian theory is not fully implemented is leading to issues.
 
lifegoesonbrah

lifegoesonbrah

Well-Known Member
ThatGuy113 said:
Looks like I got someone riled up enough to post. It may be outdated and inefficient but it is how the world works today. You have to work within the system to create change. Not understanding the current system hinders the ability to even fathom realistic actions for change. Sadly a lot of people neglect to learn basic economic theory but somehow want to fix the economy with knee jerk reactions that sound good in the ears of a party's base.

Increasing fed debt during hard economic times to stimulate the economy and Reducing the fed debt during times of prosperity.
That is the basic theory. Not just increasing spending 24/7. The fact is that true Keynesian theory is not fully implemented is leading to issues.
Click to expand...
Well the counter argument to my argument is that during recessions, consumption is less than equilibrium therefore government should supplement the deadweight loss by consuming. However this theory fails to address several issues:

Government spending further hinders consumption and investment regardless because of taxation and inflation.
Government spending will continue after the recession.
Inflationary methods of spending is damaging to our currency.
Government spending creates bureaucratic institutions.
Government spending invites fraud, waste, and abuse.


I think stimulus spending, if anything, prolongs the agony.
 
ThatGuy113

ThatGuy113

Well-Known Member
lifegoesonbrah said:
Well the counter argument to my argument is that during recessions, consumption is less than equilibrium therefore government should supplement the deadweight loss by consuming. However this theory fails to address several issues:

Government spending further hinders consumption and investment regardless because of taxation and inflation.
Government spending will continue after the recession.
Inflationary methods of spending is damaging to our currency.
Government spending creates bureaucratic institutions.
Government spending invites fraud, waste, and abuse.


I think stimulus spending, if anything, prolongs the agony.
Click to expand...
Well it worked pretty well for WWI AND WWII to help boost the American economy that would later turn around to help rebuild Europe.

You and your fellow like minded voters want to change the system to something outside the realm of Keynesian theory. Swapping out a engine sounds great in theory but if you dont know how a basic engine works I doubt the proposed plan of action to swap engines would not succeed. All Im saying is spread the education. If its wrong then know specifically why not just hearing about reports on from the talking heads on both sides of the spectrum. Obviously this wasn't directed at people who actually can name different systems of economics theory instead of the group that just says the economy runs on capitalism and not digging any deeper for understanding.

btw the gold standard did not work because of a failure in politics to carry out the true system just like how we are not enforcing the full laws of Keynesian theory. The federal government clamped down on peoples freedoms to invest. Restricting and even stopping the purchasing of gold investments. You have to be a realist and realize that pushing theory will never result in 100% completion leaving for error and eventual change. Its great to have an ideal to hold society to but when in reality not every person who affects those policies are going to go along with it. Either way we go its a half ass job. It just comes down to which half ass job is more efficient and effective in implicating it into reality not just theory
 
lifegoesonbrah

lifegoesonbrah

Well-Known Member
ThatGuy113 said:
Well it worked pretty well for WWI AND WWII to help boost the American economy that would later turn around to help rebuild Europe.

You and your fellow like minded voters want to change the system to something outside the realm of Keynesian theory. Swapping out a engine sounds great in theory but if you dont know how a basic engine works I doubt the proposed plan of action to swap engines would not succeed. All Im saying is spread the education. If its wrong then know specifically why not just hearing about reports on from the talking heads on both sides of the spectrum. Obviously this wasn't directed at people who actually can name different systems of economics theory instead of the group that just says the economy runs on capitalism and not digging any deeper for understanding.
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Is it directed to those people who suggest that the "New Deal" was the fix-all solution to the depression, denying all of the other factors and providing no basis of their theory as well?
 
ThatGuy113

ThatGuy113

Well-Known Member
lifegoesonbrah said:
Is it directed to those people who suggest that the "New Deal" was the fix-all solution to the depression, denying all of the other factors and providing no basis of their theory as well?
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The people who actually implemented that were just working off of Keynesian theory. I wouldnt consider it a knee jerk reaction anyways. People saw the issues with how the economy was handled in the 20's, I can assure you that it was a bit more planned out then your suggesting. Besides it did have its advantages, not denying it had short comings. Social policy is never going to be perfect.

anyways... I was aiming more at the knee jerk reactions suggested here on the forums way to often.
 
NLXSK1

NLXSK1

Well-Known Member
ThatGuy113 said:
The people who actually implemented that were just working off of Keynesian theory. Besides it did have its advantages, not denying it had short comings. Social policy is never going to be perfect.
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Shortcomings like enslaving 2 generations of Americans to pay for it....

Yep, not very perfect.
 
ThatGuy113

ThatGuy113

Well-Known Member
Yup, cause that's a viable comparison.....

A2557.jpg

not.

is it so bad to want people to think realistically when they look the actual implications of implementing their ideas?
 
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