Not at all. Free trade isn't fair trade. America was built on tariffs. China was built on tariffs. Free trade between nations with similar labor cost is fine. Ron Paul advocates free trade between all nations, except with minimal to no regulation and taxation. Under that policy regime, yes, free trade with every nation could work, because capital would flow into the United States. But under currency policy and unit labor cost, we bleed wealth to China.
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Alternatives to Keynes or Austerity
- Thread starter trading1
- Start date
Not at all. Free trade isn't fair trade. America was built on tariffs. China was built on tariffs. Free trade between nations with similar labor cost is fine. Ron Paul advocates free trade between all nations, except with minimal to no regulation and taxation. Under that policy regime, yes, free trade with every nation could work, because capital would flow into the United States. But under currency policy and unit labor cost, we bleed wealth to China.
Quote from trading1:
If both Austerity and the demand support view of Keynes are being mocked as inadequate for the current crisis then what is the valid alternative, is there one?
Thank you for any information
Tearing down monopolies, duopolies, big sisters, big government to return to free economy through smaller independent competing enterprises, privatized government agencies doing targeted work and eventually becoming independent businesses.
Austerity is an old concept and will not work now. If the deficit is spent wisely to help people dependent on government to attain economic independence that would work. Currently it is wasted to support local and national political elections through paying their supporters in kind and in jobs/retirement at the expense of the entire country.
Certain amount of excess of liquidity with fractional banking and financial engineering in the environment of free economy would contribute to accelerated economic growth.
Current political constrains and control over economy using monopolistic banking and inefficient monopolistic enterprises creates economic stagnation exacerbated by inflation.
Quote from morganist:
This is the suggestion I made.
http://morganisteconomics.blogspot.co.uk/2012/09/i-had-this-published-at-huffington-post.html
This is not applicable to countries with their own fiat currency. The U.S. can force the equivalent of a creditor's agreement on its creditors by paying its debts using dollars that have less buying power than the dollars borrowed, the result is equivalent to negotiating a lowered interest rate on debt.
Quote from achilles28:
If Keynesian principles are necessary and prudent stave off a recession, why aren't they heeded to restrain booms? Remember, during periods of strong growth, Keynesians are supposed to hike interest rates and run surpluses. Whatever happened to that? Oh, right. Politicians forget the discipline part and focus on cheap money. That's the entire point: Keynesian economics works in theory, not practice. In practice, it's machinations are corrupted by Politicians and Central Bankers who abdicate the pain to keep themselves, and their friends, in a job.
The question is what to do?
what to do? dont elect republicans. bush when faced with a surplus exactly at the time the payback part of keynesian economics is supposed to kick in and build surpluses, decided to give it all back as tax cuts for the rich. look where we ended up......
"Bush argued that unspent government funds should be returned to taxpayers, saying "the surplus is not the government's money. The surplus is the people's ..."
Quote from Free Thinker:
what to do? dont elect republicans. bush when faced with a surplus exactly at the time the payback part of keynesian economics is supposed to kick in and build surplusses, decided to give it all back as tax cuts for the rich.
"Bush argued that unspent government funds should be returned to taxpayers, saying "the surplus is not the government's money. The surplus is the people's ..."
To politicize fiscal corruption in Washington as only a Left or Right phenomenon is nothing but idiotic partisan hackery. The Dems have presided over some of the largest budgets, deficits and unsustainable social programs, in history. The whole notion of one side "doing it right" is complete horseshit. That's why we're still in this mess. Because people can't see through the idiotic left-versus-right demagoguery. They think there's a difference when there's zero.
Quote from achilles28:
To politicize fiscal corruption in Washington as only a Left or Right phenomenon is nothing but idiotic partisan hackery. The Dems have presided over some of the largest budgets, deficits and unsustainable social programs, in history. The whole notion of one side "doing it right" is complete horseshit. That's why we're still in this mess. Because people can't see through the idiotic left-versus-right demagoguery. They think there's a difference when there's zero.
you are just wrong as usual. had dems been in power i doubt we would have had tax cuts for the rich or two needless 10 year 3 trillion dollar wars.
i realize serious thinking on the subject would force you to make unpleasnt conclusions but its worth a try.
Keynes enthusiasts forget the human element. Human politicians will never be responsible enough to pay down debt in the good times.
I guess the same could be said for the Austrians. It's too easy to grow government by those in power.
Probably what we currently have, is about as perfect as it will get, and therefore booms and busts will always occur.
I guess the same could be said for the Austrians. It's too easy to grow government by those in power.
Probably what we currently have, is about as perfect as it will get, and therefore booms and busts will always occur.
Quote from vicirek:
Guys this is beyond democrats/republicans. Now the country needs visionary that would be above that all and had vision for the next 50 years and very broad knowledge in all things that matter for making real progress.
all we need is some measure of compromise. obama has offered $3 in spending cuts for every $1 in new revenue. its a reasonable compromise that could go a long way toward fixing the problem.
the only thing standing in the way is republicans refusal to compromise.