Many Keynesians argue that in order to stimulate the economy you must increase consumption. There methods of doing so result in a decrease in investment. They argue that without an increase in consumption, investment will naturally not take place because people will not demand goods. One of the bigg…

Name: Economist Hans Hermann-Hoppe rips Paul Krugman on Money Printing 01-10-13
Uploaded: 2013-01-31T02:18:34Z
Description: Continuing what I said earlier about dumbing it down…Hoppe takes it even farther… [Economist Hans Hermann-Hoppe rips Paul Krugman on Money Printing 01-10-13]

how would you respond to someone saying “people are LESS LIKELY to invest in a bad economy because the risk is too high and many jobs and businesses are being lost.” I’d respond that they are right. Now the question becomes, how do we turn the economy from bad to good? All govt intervention wil…

Basically what Dave said. You already have the answer. I think part of your problem is this: This is not necessarily true. You seem to be focused on “what is something that needs to be done”, only so that you might have a positive response to some central planner who asks that question (which of …

Desire (consumption) tells you why the economy exists. Production tells you why it grows.

Remember that “demand” is not simply an impulse to want something. To create demand for a good, you must first have the resources to trade for that good. A homeless person without any money whatsoever may crave for apple products or food, but if they do not have the money to buy them, they do not …

Alright I’m back. So, I looked at some of the links which were very helpful. Basically, what I was looking for was how exactly production would be stimulated in a recession. I learned that during recession demand is lowered and in result wages come down (from less demand for labor), prices come down…

Continuing what I said earlier about dumbing it down…Hoppe takes it even farther… [Economist Hans Hermann-Hoppe rips Paul Krugman on Money Printing 01-10-13]

Here’s my input: The question: How is it that the economy can return to normal spending patterns when there isn’t adequate demand for the consumer goods produced in the first place. There are some awkward aspects of investment here, but this is the essence of the question. The responses: The pr…

Neo, There are other problems with govt interventions besides regime uncertainty. All the govt can do is redistribute, openly [taxes] or deviously [inflation]. Neither of these things increases production in the economy as a whole. Did you not read my article that quotes Keynesian research that p…

Oh this ought to be good. Hmm. Where have I heard that before .

Hmm. Where have I heard that before . I was indeed building upon something you had noted in this thread. My contribution was elaborating the flaw in the chicken and egg argument.

Investment vs. Consumption

Economics Economics Questions

John_James January 31, 2013, 2:18am 11

Continuing what I said earlier about dumbing it down…Hoppe takes it even farther…

Krugman tries to answer Hoppe

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Investment vs. Consumption

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