Tuesday, July 30, 2013

Team "Free Market"

"When consumers and businesses set out to reduce their debt burden, and private spending and investment stall, it is the government’s job to borrow, spend and pick up the slack."
This quote is from an article supporting Keynesain economics.  Keynesian economics thinks that during a recession, people should continue to spend their money freely, which will stimulate the economy and bounce the country back.
I disargee.  Recessions are unavoidable, they happen routienely.  Their purpose is to weed out the companies and ideas that are weakest, with the least support from the public, and open up those goods and resources to a new idea, or to those businesses who have already proven their worth.
When a recession eliminates the weakest links, that recession is ended, in a free market.  Our economy cannot and should not be controlled by Keynesian politicians.   Everyone needs to step back, no rules and regulations, and see what happens. We will see the jobs that we need, we will see where the money goes and does not go, we will see the economy fix itself.

Article link: http://www.nytimes.com/2013/05/22/business/despite-keynesians-victory-economic-policy-holds.html?pagewanted=all

1 comment:

Larry Eubanks said...

You missed one idea from Keynes v Hayek. Hayek knows that recessions don't just routinely happen. Remember fear the boom, which results from bad government actions.