From: Mark Steven Heyman (markheyman@infoproconsulting.com)
Date: Thu Dec 09 2004 - 15:08:22 GMT
On 8 Dec 2004 at 19:34, PhaedrusWolf@aol.com wrote:
The government has a strong influence on the economy. Saving in
periods of good economic periods is necessary, so that the Gov. can
spend in periods when the general public will not. As we reduced the
deficit during the Clinton years, we were able to run a deficit in
the recent bursting of the bubble that allowed us to avoid a
depression something similar to what we saw 1929 - 1945. So far
anyway. :o)
Hi Chin,
Thanks for short course on economics. As you suggested, Keynes, who
was by no means anti-capitalist, saw the whole thing going under, and
understood that the only way to save it was for the government to
inject major cash into the system. It's important to recognize how
very close to economic and civil meltdown we were during the early
30's. Serious rioting was erupting in major cities. Things improved
dramatically as New Deal policies took effect, and then came WWII,
which resulted in REALLY massive infusions of government cash, and
the beginning of the now pervasive military-industrial complex. The
US emerged from WWII as the only really healthy economy on earth.
Your last paragraph, pasted above, says a lot. I would suggest,
however, that in any crashing economy, most people are UNABLE to
spend; it's not a matter of being unwilling. And I agree with your
"So far anyway."
In conclusion, and apropos to this thread, it's government
intervention in our economy that keeps it going. This is why, when
bold and independent "entrepreneurs" complain about the government
getting in their way, one has to cough a sardonic laugh. Would be
Capitalists know better than anyone that their highly lucrative
system would self-destruct in a twinkle without state sponsorship.
Best to all,
Mark Steven Heyman (msh)
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