Wednesday, June 13, 2012

Steve's barking To Keynes or not to Keynes

I like to think I'm a Keynesian (Keynes?).
What do I know about Keynesian economics?
Yea I believe that when the economy in ones nation it's governments role to stimulate the economy.
I'm also one who believes that when government stimulates the economy with job creation, those jobs should pay enough for those employed have a large discretionary income s those employed would have the money to buy goods and services from the private sector or at least save or invest. The private sector would then have the incentive to invest in employees. That being the theory or what I believe the theory to be, one would be hard pressed to come up with a better theory, unless you believe in the job fairy.
I also believe that one should increase taxes in good time to pay for the borrowing that takes place in bad times.
I think that makes me a Keynesian.
Now I've seen some load mouths on the boob tube who claim they understand Keynesian economics, but for some unknown reason, I don't feel they know Jack about Keynesian theory of economics.


I've been reading that businesses are investing in employees because of uncertainty.
Life is always full of uncertainties. I just think that businesses are doing what they are suppose to be doing. Some businesses are making profits at a record breaking pace. Why should they hire new employees unless they have reasonable expectation that there profits would be even greater or if they don't their profits would diminish.


The only reason for a business is to make money, it's not to create jobs, promote social justice, or to clean the environment. Those thing are incidental to making money.

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