I agree with everything Jim D. said, but I would add one twist. Both Keynesian policy and monetary stimulus also have the effect of reducing competition. In effect, depressions and recessions are what promote competition in a market economy. That is the reason that so much technical change occurred since the market crash began.
Lacking adequate competition, the market gets weaker. In a globalized economy, part of result will be deindustrialization. Michael Perelman Economics Department California State University Chico, CA 95929 530 898 5321 fax 530 898 5901 http://michaelperelman.wordpress.com _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
