Keynesian made this mess and so accept Keynes! I guess you accept this mess and want to continue it.
A stunning conclusion. I would say exactly the same thing, accept my conclusion is that Mises and Hayek were right, not Keynes. Too bad you didn’t put this in your original post.
So, here is economics in a nutshell: 1) the market is unstable, driven by animal spirits, 2) a commodity based monetary system is barbaric, 3) the central bank provides stability, 4) government intervention is required to prevent economic catastrophe, or, to “smooth out” the natural business cycle, 5) printing money creates prosperity, 6) deficit spending creates jobs, 7) too much saving is bad because it can cause a deflationary catastrophe, 8) the government can determine how much saving is appropriate and then enforce the correct amount of saving through democratic means.
Did I miss anything?
Except the animal spirit part. I reject this notion. If that was the case then democracies don’t have a chance either and we are Truly Screwed.
Which I don’t believe!
Our spirit is much, much, much, much, much finer than animal spirits. Go read history. Nothing has changed. The only difference is we live in cities and the rate of material production is astounding! That is the only difference.
Animals did not and cannot achieve this rate of material production. We have much more knowledge than hardwired knowledge. We are now even beginning to know the process of creativity and knowledge creation ifself.
And if I have said something wrong. May god forgive me and guide us all and correct any mis-understanding I have spread!
Mansoor
You have argued for the past 10 pages that you believe, if left to themselves, people will irrationally hoard money out of fear. Is that or is that not true?
lol @ this thread
Leaders have to learn that hoarding leads to disaster. The have to educate the public. Do their best to manage. What else can they do?
And if I cannot get enough traction on this message then whatever has to happen will happen this too is god’s choice. So what. Who am I?
Mansoor
…
Listen. My avatar. You know, that picture right next to this post? If you’re too lazy to look at it, it’s a picture of a stuffed bunny being eaten. Do you know why the bunny is being eaten?
We should also warn them about the boogie monster. Whatever it takes, we must warn people about the boogie monster! CAN’T YOU SEE HOW REAL OF A THREAT HE IS???
OH NO! Just looking at him makes me shriek in terror!
So, the animal spirit part was the only thing you disagree with? Everything else was OK?
Mansoor, it’s OK, really. Trust me, you have not spread any misunderstandings. We understand you completely.
Yes!
Sorry. I meant may god forgive me and guide us all and correct any FALSE HOOD I have spread!
Mansoor
I just spoke to God. He wants you to read this.
Mansoor, have you read “America’s Great Depression” by Rothbard? Seems like all the answers to the fallacies you’re expression are in part 1 of the book.
Here it is.
von Vodka, I’m doing you a favor by telling you this. I recommended AGD already many pages ago. Mansoor does not read suggested readings. As he has just clearly explained, he has told us what he believes and why (history, facts, etc). It is futile to suggest anything other than what was outlined in “Economics in a Nutshell”, above.
Okay, so we ten pages of coherent counter-arguments to your one post and other posts of intellectual deflections/misdirections (of the OP). And all one can get out of it is a naive claim to “we’ll see!”
Sorry, but this doesn’t follow as truth. You, Mansoor, are the one asserting a faulty logic for others to follow, namely that you want others to consume more than can ever be produced. All the Keynesian prescription does is prop up unsustainable production. And in doing so you are misallocating resources that could be utilized elsewhere. You think more in dollar signs than in actual goods, resources, and production which is the root of your error. The structure of an economy dictates what that economy can and will do, not what unit of exchange that’s agreed upon.
The correction’s are right in front of your eyes–read them.
please see my new post:
https://forum.freecapitalists.org/t/does-deflation-lead-to-hoarding-of-money/11482
The market is the ultimate democratic process, where any penny spent or not act as a vote, as Mises said.
It that is the case then lets shut down the federal, state and local governments. Everybody can vote for what they want via spent dollars? Agreed?
Mansoor
I lol’ed. You need to remember that we are in a deflationary period of governmental price stability so we need moar free info.