Posts
Here's an interactive graphic from NYT (with sound) detailing how our government has responded to previous recessions. The graphic focuses on whether government's response was Keynesian, if it worked, and other factors that may have complicated government's efforts.
http://www.nytimes.com/interactive/2009/01/26/business/economy/20090126-recessions-graphic.html
As seniors at K College, we've certainly had our fair share of Keynesian theory. How is everyone feeling about Keynes's ideas regarding how government should lift the economy out of recession? Is government spening the answer? Or maybe you side with those who are calling for fiscal responsibility through a balanced budget?
Subscribe to:
Post Comments (Atom)
I think that right now government spending is the right answer because we really don't have any other option. I believe that the government pumping money into the economy is going to create more jobs and push the economy into a more balanced state. Having said that, its probably not the best option for the long run because it is just increasing deficit that the government owes.
ReplyDeleteI think it is interesting that only the Keynesian policy that 'worked' was in the 1980s and it was not even intentionally enacted. It suggests that the current spending policy may once again be helpful because both crises deal with, to some extent, housing market issues. However, this article also further shows that there are so many factors that go into recovering from a recession (even beyond fiscal and monetary policy).
ReplyDeleteI remain and unapologetic Keynesian having read Keynes and studied some of the policy history.My thought is that past administrations have been timidly Keynesians and the hesitation to spend caused the measures to be less effective.
ReplyDelete