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View Diary: You can't borrow your way out of debt- what? (44 comments)

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  •  actually that is 100% incorrect (1+ / 0-)
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    as per the famous example of burying money and paying companies to dig it up.

    Keynes observed that even makework has a stimulative effect by increasing consumption. In a recession/depression the first objective of economic policy should be to stop the cycle of economic decline by creating counter cyclical demand.

    But clearly an educated workforce is valuable.  Only economists would pretend not to understand why.

    As for the long run: Keynes observation was about the weakness of Marshallian economics in which one justifies the assumption of  stability by claiming such minor effects as depressions are momentary blips.  He was not at all advocating the kind of slash-and-burn economics practiced by Ronald Reagan or Alan Greenspan.

    self-appointed intellectual cop

    by citizen k on Sun May 12, 2013 at 07:39:59 PM PDT

    [ Parent ]

    •  101% off the mark (0+ / 0-)

      "Even makework," i.e., a lesser-quality alternative.

      Surely, an educated workforce is valuable. Putting money into education is not, however, much of an immediate stimulus, which was the original topic.

      No one here mentioned anything like "slash and burn" economics, and I have no idea what you're on about.

      Oh, yes. My use of "long term" was what passes for mild humor based on the post I was responding to. So sorry it went right by you.

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