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Re: Where to now?

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  • Kevin O'Brien
    ... I only wish we had been fixated on creating demand. Instead, everyone is fixated on something they call the fiscal cliff , which is largely a non-issue.
    Message 1 of 48 , Nov 20 5:45 AM
      On 11/19/2012 4:56 PM, D.C. Frandsen wrote:
      > But I also have a problem with the idea that creating new customers by which I guess, Kevin, you mean demand, is the only solution. I believe our problem has been that we have been fixated on creating demand only, not on the type of demand we are creating.
      I only wish we had been fixated on creating demand. Instead, everyone is
      fixated on something they call the "fiscal cliff", which is largely a
      non-issue. We had budget surpluses as recently as 2000, and there were
      people back then who worried about what happens the the bond market when
      the federal government is paying down debt. Would it reduce the supply
      of bonds to the point that it might destabilize the bond market? Then
      Bush came along, put a huge amount of money in the hands of the wealthy,
      then started a couple of wars without any provision for paying for them.
      Changing the situation is mostly a matter of returning to the sensible
      policies we had before Bush came along, when adults were running the show.

      The problem is that doing it all at once is going to cause serious
      economic problems. Right now, there is a ton of cash that is mostly on
      the sidelines because the people who have it do not see opportunities
      for productive investment. The Republican answer is to give those people
      even more cash on the grounds that they are "the job creators". That is
      complete hogwash. There is already tons of investible cash out there
      now. It will get invested only when there is demand for the products
      that could be produced. I would prefer that these products be the
      "right" kind, which for me would include renewable energy, efficient
      transportation, etc. because that global heating problem is still out
      there. But as Keynes pointed out, whether the right products are
      produced is irrelevant to the problem of getting the economy going again.

      Regards,

      --
      Kevin B. O'Brien
      zwilnik@...
      A damsel with a dulcimer in a vision once I saw.


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    • John Williams
      ... Would you be referring to the study published by Bauman and Rose in 2011? http://www.sciencedirect.com/science/article/pii/S0167268111000746
      Message 48 of 48 , Nov 24 1:35 PM
        On Sat, Nov 24, 2012 at 12:27 PM, Kevin O'Brien <zwilnik@...> wrote:
        > I also note in passing that a study done a few years ago
        > about charitable giving found that economists were the stingiest group in
        > the study, which I found not at all surprising.

        Would you be referring to the study published by Bauman and Rose in 2011?

        http://www.sciencedirect.com/science/article/pii/S0167268111000746

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