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Originally Posted by Mr Tonka
Quote:
Originally Posted by Biorin
I don't think it validates Keynesianism. I think that Keynesianism is a bit like, say, liposuction. They both provide a quick and effective solution to the problem at hand, but do not address the underlying cause, which is why we keep going through the same cycles again and again. Artificially lowered interest rates encourage malinvestment/poorly thought out investments, which then fail and end up supported by QE and similar plans. There's a quote from Paul Krugman back in 2001 or so saying how Greenspan needed to create a housing (or similar) bubble to replace the tech bubble. How about you don't fuck with interest rates and create bubbles that eventually crash?
To me, deregulation and lowered taxes are much more effective in the long term. The government taking money from people and acting as if it best knows how to allocate it to stimulate the economy (bureaucracy and special interests, mostly) is ridiculous. The broken window fallacy comes to mind.
That's really oversimplified, and probably doesn't answer your question, but yes.
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Thank you. |
Why are you thanking me for oversimplifying?