Thread: General Politics Keynesian Job Program / Stimulus Plan
View Single Post
Old 02-05-2012, 01:08 PM   #41
banyon banyon is offline
Supporter
 
banyon's Avatar
 

Join Date: Aug 2005
Location: Dodge City, Kansas
Casino cash: $5545
Quote:
Originally Posted by BucEyedPea View Post
The Disaster of Keynesian Economics
http://www.goodnessmovement.com/file...oad/keynes.pdf

Keynes knew where his ideas would lead, in fact, wanted it to lead.






Don't give me any of this crap that the Federal Reserve isn't the state. It's an appendage of the state as a hybrid institution and is not as independent as claimed. It is the nation's central bank.

Lol he refers to taxation as a "scheme."
Good God, your quotation truncation knows no shame. You do know how easy it is to look up the actual quote in widely published materials, don't you? :

BEP's Quote:


Quote:
The State will have to exercise a guiding influence on the propensity to consume, partly through its scheme of taxation, partly by fixing the rate of interest, and partly, perhaps, in other ways [such as?]. Furthermore, it seems unlikely that the influence of banking policy on the rate of interest will be sufficient by itself to determine an optimum rate of investment. I conceive, therefore, that a somewhat comprehensive socialization of investment will prove the only means of securing an approximation to full employment. . .
ACTUAL QUOTE

In some other respects the foregoing theory is moderately conservative in its implications. For whilst it indicates the vital importance of establishing certain central controls in matters which are now left in the main to individual initiative, there are wide fields of activity which are unaffected. The State will have to exercise a guiding influence on the propensity to consume partly through its scheme of taxation, partly by fixing the rate of interest, and partly, perhaps, in other ways. Furthermore, it seems unlikely that the influence of banking policy on the rate of interest will be sufficient by itself to determine an optimum rate of investment. I conceive, therefore, that a somewhat comprehensive socialisation of investment will prove the only means of securing an approximation to full employment; though this need not exclude all manner of compromises and of devices by which public authority will co-operate with private initiative. But beyond this no obvious case is made out for a system of State Socialism which would embrace most of the economic life of the community. It is not the ownership of the instruments of production which it is important for the State to assume. If the State is able to determine the aggregate amount of resources devoted to augmenting the instruments and the basic rate of reward to those who own them, it will have accomplished all that is necessary. Moreover, the necessary measures of socialisation can be introduced gradually and without a break in the general traditions of society.

BEP's QUOTE:

It is not the ownership of the instruments of production which it is important for the State to assume. If the State is able to determine the aggregate amount of resources devoted to augmenting the instruments and the basic rate of reward to those who own them, it will have accomplished all that is necessary. Moreover, the necessary measures of socialization can be introduced gradually and without a break in the general traditions of society.

END OF PAGE ACTUAL QUOTE

Whilst, therefore, the enlargement of the functions of government, involved in the task of adjusting to one another the propensity to consume and the inducement to invest, would seem to a nineteenth-century publicist or to a contemporary American financier to be a terrific encroachment on individualism. I defend it, on the contrary, both as the only practicable means of avoiding the destruction of existing economic forms in their entirety and as the condition of the successful functioning of individual initiative.

For if effective demand is deficient, not only is the public scandal of wasted resources intolerable, but the individual enterpriser who seeks to bring these resources into action is operating with the odds loaded against him. The game of hazard which he plays is furnished with many zeros, so that the players as a whole will lose if they have the energy and hope to deal all the cards. Hitherto the increment of the world’s wealth has fallen short of the aggregate of positive individual savings; and the difference has been made up by the losses of those whose courage and initiative have not been supplemented by exceptional skill or unusual good fortune. But if effective demand is adequate, average skill and average good fortune will be enough.

The authoritarian state systems of today seem to solve the problem of unemployment at the expense of efficiency and of freedom. It is certain that the world will not much longer tolerate the unemployment which, apart from brief intervals of excitement, is associated and in my opinion, inevitably associated with present-day capitalistic individualism. But it may be possible by a right analysis of the problem to cure the disease whilst preserving efficiency and freedom.
__________________
Posts: 32,667
banyon wants to die in a aids tree fire.banyon wants to die in a aids tree fire.banyon wants to die in a aids tree fire.banyon wants to die in a aids tree fire.banyon wants to die in a aids tree fire.banyon wants to die in a aids tree fire.banyon wants to die in a aids tree fire.banyon wants to die in a aids tree fire.banyon wants to die in a aids tree fire.banyon wants to die in a aids tree fire.banyon wants to die in a aids tree fire.
  Reply With Quote