Sam <[email protected]> wrote: > > His advice goes against everything you've been saying for years.
That's false. I'm for a balanced economy; who the hell wouldn't be? What Keynes was saying is simply a fact of accounting: C+G-T=0 over the long term. In other words, if consumer and business spending drops government has to step in to fill the gap or the economy collapses. (Even if does, though, there's no guarantees). That's the place we're in now, which is not a place I think we should've gone, but here we are. And, frankly, it's WAY more complicated than that now because we're now dependent on the global economy and the forces at work there; in other words if our monetary and fiscal policy isn't aligned with theirs then it kind of doesn't matter what we do. The globe has built an interconnected economy with no system in place to manage it. All the normal rules no longer apply. Take Japan: their government encouraged exports at the expense of a competitive (globally) set of local businesses. This is why you see Sony and Toyota here and McDonald's there. (i.e., how many global japanese restaurant chains can name? hint: zero). Our government has spent the last 3 decades encouraging manufactured consumer imports funded on credit with imported Chinese money, i.e., we borrow their money and buy their stuff. The old saying (repeated on this list) was, "oh well, if we can't pay them back too bad for them". That ignores the interconnected economy. If we can't pay them back the global economy collapses including ours so too bad for us. That almost happened in 2007 and all of the forces that caused it and now WORSE. And I have no bloody idea how we dig out and, scarily, neither does anyone else. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:336209 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
