Conversely, I do fully comprehend that Keynesian theories don't always work, but at this point I'm more or less willing to see our government try something as opposed to nothing. Specifically, I remember quite well reading an article about the many failed stimulus packages utilized in Japan during the 90's as their attempt to pull themselves out of a recession, yet didn't do much more than create a large national debt, and make extremely nice roads. Clearly our monetary policy isn't doing enough to encourage more domestic investment, to the chagrin of monetarists, thus we aren't making any progress in terms of trying to achieve economic growth.
In conclusion, while we already have an exceptionally large national debt, we must practice deficit spending until our country can recover from the current economic crisis.
2 comments:
Jer Jer, $1,000 is going to do little to aid the economy. But I think anything is worth a try at this point.
leave the economics to the economists marc....
Post a Comment