Comments on: Those pesky animal spirits

By: Anonymous

Anonymous — Fri, 23 Oct 2009 20:42:00 +0000

The reason why the Keynesian argument works is because the reason people are scared about the economic future has to do with people worried about their income.

at the least the people put to work from the stimulus projects will go out and spend and that spending will be a bust to the economy.

by doing stimulus projects you put people to work. People with a job tend to look more favorably about the future then those with out and since they have an income to spend, they will.

Also most people wont think about the fact that they will have to pay for the debt in the future…at least they don’t think about it much, when compared to people thinking about their financial needs now.

By: Anonymous

Anonymous — Thu, 01 Oct 2009 19:21:00 +0000

A pleasure to discuss with you, surfisto. Your understanding is greater, and your manner more polite than many posters here.

By: Surfisto

Surfisto — Thu, 01 Oct 2009 19:17:00 +0000

lol, yes!
Thank you for the help this discussion helped me a lot.

By: Anonymous

Anonymous — Thu, 01 Oct 2009 19:01:00 +0000

“if a gov’t had this revenue and was not insatiable”

Come back to reality, surfisto.

By: Surfisto

Surfisto — Thu, 01 Oct 2009 18:34:00 +0000

Vikingvista,

“can they spend without causing the normal problems associated with gov’t spending?” Your answer was “No”

I am thinking theoretically, if a gov’t had this revenue and was not insatiable. Then they could keep taxes low which would fuel the non-oil based sector for when the oil runs out.
So the gov’t could spend when needed and stimulate demand without printing money and the negative effects associated with that.
So theoretically could you say maybe and not No?
I ask because the arguement is always that the gov’t should not own any industry and let private firms do what they do best. This also might tie in to an ethics discussion I am having with methinks at the moment.