Tuesday, June 12, 2012
Some economics and political economy for non-eggheads.
This article, "John Maynard Keynes and the Modern Revolution in Political Economy," sounds like it's for eggheads only. However, it is very readable and makes many good points. It makes clear how the Left jumped on the theory as a justification for increasing state control of the American economy. One no longer had to reference Marx and Engels or European socialists. Of course, Keynesian theory eventually becomes an addictive, vicious, incrementalist, vote-buying circle of increased spending, taxing and deficits which, IMHO, in the long run lead to European-style economic crises and riots. Of course, libertarians and economic conservatives jumped on the works of Schumpeter, Mises and Hayek. Economics and political economy are great fields if one is interested in ideology and its effects. If you are interested in delving a little into economics and political economy and our history and current situation, I strong recommend this readable (10 page) article. I'd like to get some discussion going on these topics.
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Not being an economist, I’m forced to compare such theories as Keynes, Mises, et al. to a home budget. As the old saying goes, “don’t live beyond your means”. There are times when big ticket items like housing and transportation drive real immediate needs forcing one to borrow. This and covering basic needs do keep business moving. But paying for the use of someone else’s money is just that. It must all be returned over time with its added interest in a secure form of payment. Households that habitually overdraw on high credit limits will ultimately crash financially. IMHO, that’s where the current senate and administration are headed with the entire country.
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