Sunday, May 15, 2011

Give Keynes a Break!

It is a shame that Keynes is not around to defend himself.
He knew about the business cycle. He could have meant that,
if government had to spend anyway and the timing was flexible,
spending should occur during troughs in the business cycle
whenever possible. Any good idea can be perverted. Putting
500 in a lifeboat designed for 50 is an example. The outcome
is probably bad.

No comments:

Post a Comment