Wednesday, August 25, 2010
Anatole Kaletsky should study economics.
The longer the recession lasts, the more the ignorance of conventional economic commentators become apparent.
Anatole Kaletsky, principal economic commentator of the The Times (London) claims today that if we get double dip or no recovery then the government has a choice between no debt reduction and a prolonged recession (see his last para in particular).
Kaletsky needs to study Keynes, and/or Abba Lerner and/or Milton Friedman. As these three individuals made clear, additional debt is wholly unnecessary for the purposes of bringing extra stimulus.
Re Friedman: see here.
Re Keynes…search for phrase “borrowed or printed money” here.
Of course, those of us with an innate understanding of economics (i.e. advocates of Modern Monetary Theory) don’t even need to read the above material by Keynes, Friedman, etc. to understand the above point about irrelevance of debt. But great minds think alike, and speaking as a great mind (self appointed), it’s always nice to see minds which conventional bores describe as “great” thinking the same way as oneself.
But we can’t expect the conventionally minded ignoramuses to bother looking at anything unconventional. If you’ve got a well paid job churning out drivel in some newspaper, why bother THINKING?