Keynesian or Austrian-School economics, or don't you care?

2015-01-03T19:28:46-05:00

Response by LTC David S. Chang, ChFC®, CLU® made Jan 3 at 2015 7:29 PM

2015-01-03T19:29:09-05:00

I think a combination! You need both the government and central bank to play a role. The central bank is much quicker than the government at times and the government can provide more stability with taxes, spending, and regulation.

Anyways from what we see in the economy now, you can't have one without the other or else the govt can shutdown and/or the economy will slowdown, inflation, and unemployment.

Response by MAJ Private RallyPoint Member made Jan 3 at 2015 8:11 PM

2015-01-03T20:11:56-05:00

The problem is that most people don't understand Keynesian and it's never implemented properly. If done right, I would support it over others. The problem however is that they miss the second half of the theory - you SPEND during economic downturns, but you SAVE during upturns. That latter part never seems to happen. But we can look at Europe now and it's pretty apparent that austerity was not a good idea. The countries that implemented the most austerity and doing the worst.

Response by LTC Yinon Weiss made Jan 3 at 2015 10:45 PM

2015-01-03T22:45:03-05:00

Austrian school. I believe that value/strength comes from hard work and productivity, not from printing money or spending what you can't afford.

Response by SGT Private RallyPoint Member made Jan 3 at 2015 10:56 PM

2015-01-03T22:56:57-05:00

SSG Gerhard S.,

You forgot an option: Neither, and I care greatly.

Response by CSM Michael J. Uhlig made Jan 3 at 2015 11:13 PM

2015-01-03T23:13:58-05:00

sharing a little more on the topic might help those of us that are less than SMEs on the subject of economics....

Response by 1LT Private RallyPoint Member made Jan 4 at 2015 12:55 AM

2015-01-04T00:55:11-05:00

People are too scared of the welfare state as advocated by the Keynesianism. Most of the time is because they never travel outside of our country and witnessed the effective and fruitful application of its principle. Is POTUS a Keynesian?

Response by SSG Gerhard S. made Jan 7 at 2015 11:45 AM

2015-01-07T11:45:14-05:00

I came across a good article by Austrian-school market economist Peter Schiff that illustrates many of the fallacies of the Keynesian model and contrasts them with the free market based approach.

http://www.lewrockwell.com/2015/01/peter-schiff/hurts-so-good/

Hurts So Good – LewRockwell.com

The sudden fall in the price of oilprovides a unique opportunity to examine the widely held beliefthatdeflation is economic poison.As many governments and central banks have vowed to fight deflation at all costs in 2015, the question could hardly be more significant.