John Maynard Keynes---A famous professor of
economics who saw
the devastating market failure known as the Great Depression live, and pointed to the vortex-like conditions of this monster storm in his book nicknamed the General Theory[1]. Some consider this book to be an all out assault on classical economics and the traditional thoughts on interest rates. Some point to Keynes’ ideas as socialist or even communist-like. Some do not. A new sailor believes people from all around the globe appreciate the same things...and this is the real incentive, the real wealth on earth. If people's lives are so desperate and stormy they cannot participate in things, the economy will not run. It needs a heartbeat. Keynes advocated that the government should step in to push the economy along in the right direction during stormy market failure conditions…the ship will not right herself. According to one legend, the professor likened the economy to a spinner of sorts, or engine as it were, and was highly concerned and frustrated with it going too slow or stalling out. It takes an enormous amount of energy to get the economy going again. Economics students during the latter half of the volatile nineteen seventies here in the US of A may remember a picture of him out in the windy cold wearing a bowler hat. Rumour has it his car broke down. These same students will also likely remember yarns concerning the monopoly busters, hydro energy projects and other WPA, or Works Progress Administration) projects such as bridges, roads, paintings, etc. See also liquidity trap and speculation.
[1] Many thanks are in order to Professor Keynes
the devastating market failure known as the Great Depression live, and pointed to the vortex-like conditions of this monster storm in his book nicknamed the General Theory[1]. Some consider this book to be an all out assault on classical economics and the traditional thoughts on interest rates. Some point to Keynes’ ideas as socialist or even communist-like. Some do not. A new sailor believes people from all around the globe appreciate the same things...and this is the real incentive, the real wealth on earth. If people's lives are so desperate and stormy they cannot participate in things, the economy will not run. It needs a heartbeat. Keynes advocated that the government should step in to push the economy along in the right direction during stormy market failure conditions…the ship will not right herself. According to one legend, the professor likened the economy to a spinner of sorts, or engine as it were, and was highly concerned and frustrated with it going too slow or stalling out. It takes an enormous amount of energy to get the economy going again. Economics students during the latter half of the volatile nineteen seventies here in the US of A may remember a picture of him out in the windy cold wearing a bowler hat. Rumour has it his car broke down. These same students will also likely remember yarns concerning the monopoly busters, hydro energy projects and other WPA, or Works Progress Administration) projects such as bridges, roads, paintings, etc. See also liquidity trap and speculation.
[1] Many thanks are in order to Professor Keynes