Keynsian spending

cawacko said:
I read a recent Krugman column so this was on the brain. The basic Keynesian belief is when the econony is in trouble the gov't needs to step in and help the economy out with spending correct? Then when the econony is good we reduce spending.

So in our supposed good/excellent econony Krugman and our two Democratic Presidential candidates are proposing massive gov't spending on infrastructure.

What is the Keynesian argument for this other than a general belief that it's always a good time for more gov't spending?
Click to expand...

So you support this now right PMP because Donald does?
 
cawacko said:
You have yet to address the OP which is why do we need Keynesian stinulus spending on infrastructure in a supposed good econony
Click to expand...
The economy has improved, but there is nothing wrong with making our infrastructure great, again and in the process creating jobs.
 
Rana said:
The economy has improved, but there is nothing wrong with making our infrastructure great, again and in the process creating jobs.
Click to expand...

Why is it the federal gov'ts job to borrow massive amounts of money to dole out political favors, which is essentially what many transportation boondoggles are, in an area that states should be responsible for?
 
cawacko said:
What gets me here is that Trump, a Democrat, has said he will spend double the public money on infrastructure and "public investment" that Hillary will. I guess at this point I shouldn't be surprised.
Click to expand...
Ill split the middle with you on Keyensian vs. monetarist approach. Obviously the Keynesian approach was appropriate once we were in a liquidity trap. Now that we're not managing the money supply to prevent us from entering another is fine by me.

Having said that the recovery has not reached evenly across the board and TARP, though preventing a total crash and burn, assured that most of the economic recovery would go to the top economic tier.

With that being the case the public investment in infrastructure is appropriate because it would provide a grass roots economic stimulus but, point in fact, it is sorely needed on its own merits. Pretty hard to do business with crappy roads and collapsing bridges and an antiquated power grid. It simply good business.
 
I Love America said:
The whole "government needs to step in during a slowing economy" is a myth perpetuated by statists and big government types. The government just takes. It must take out of the economy in order for it to do anything. So this notion that the government can "stimulate" the economy is farce that has been taught to too many generations.

If it were an effective means of economic growth then we should have GDP of over 10%. We do not.

Look at the great depression of 1920. People don't hear about it much because it flies in the face of statist goals. But, there was a pretty severe depression in 1920. What did Calvin Coolidge do? He cut government spending. The government did nothing. What did they economy do? It rebounded. Ever hear of the roaring 20s?

This notion that we can only thrive at the hands of some wizards of smart is a myth and you suffer for it economically, spiritually, culturally and most of all you erode your freedoms.

But, it gives you a personal sense of comfort so I guess that is something as long as you don't have to personally pay the piper
Click to expand...
Yea...it collapsed into the Great Depression you nit wit.
 
I appreciate you not responding in this thread PMP because none of this matters to you. No core principle beliefs at all.
 
Mott the Hoople said:
Ill split the middle with you on Keyensian vs. monetarist approach. Obviously the Keynesian approach was appropriate once we were in a liquidity trap. Now that we're not managing the money supply to prevent us from entering another is fine by me.

Having said that the recovery has not reached evenly across the board and TARP, though preventing a total crash and burn, assured that most of the economic recovery would go to the top economic tier.

With that being the case the public investment in infrastructure is appropriate because it would provide a grass roots economic stimulus but, point in fact, it is sorely needed on its own merits. Pretty hard to do business with crappy roads and collapsing bridges and an antiquated power grid. It simply good business.
Click to expand...

Why is it the federal government's job to create this massive "infrastructure stimulus investment"?
 
mogur said:
Worked for Eisenhower.
Click to expand...

Federal highway system. Eisenhower said the other 99% of road surfaces which aren't part of the federal highway system should not be handled by the federal gov't. So why is the federal government not listening to Eisenhower?
 
cawacko said:
Federal highway system. Eisenhower said the other 99% of road surfaces which aren't part of the federal highway system should not be handled by the federal gov't. So why is the federal government not listening to Eisenhower?
Click to expand...

OT, if you get a chance I posted something to you in Off Topic about charter schools in black neighborhoods. It was in today's paper and I know we've discussed it a few times.
 
cawacko said:
Federal highway system. Eisenhower said the other 99% of road surfaces which aren't part of the federal highway system should not be handled by the federal gov't. So why is the federal government not listening to Eisenhower?
Click to expand...
Cause he meant the States should. How many toll roads you driven on lately?
 
cawacko said:
You have yet to address the OP which is why do we need Keynesian stinulus spending on infrastructure in a supposed good econony
Click to expand...
Are you serious? Do you think the private sector is going to repair our crumbling infrastructure? And...the point you are no doubt failing to make....Wall St does NOT reflect the true economy. Corps. have record profits, much of it stashed overseas. Manufacturing is gone, which doesn't bode well for the real economy.

As such, there is nobody left to create jobs but the taxpayer.

Win/Win. Fix the disastrous infrastructure, and put people to work
 
You must log in or register to reply here.
Back
Top