quote: Cometh the moment, cometh the man. Crashing share prices, global financial instability, deflation lurking in the background: this is a world made for Keynes.
[ July 22, 2002: Message edited by: rasmus_raven ]
From: Fortune favours the bold | Registered: May 2001
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rasmus
malcontent
Babbler # 621
posted 22 July 2002 01:00 AM
quote: One of the basic tenets of classical economics is Say's law, which states that there can never be slumps because supply creates its own demand. But, as Robert Kuttner says in his book (Everything for Sale), the reality of globalisation is that low-wage workers in poor countries are adding vastly to the world's supply of goods but lack the purchasing power to buy the products they make. There is, in other words, a global deficiency in aggregate demand that is leading inexorably to lower prices, thus intensifying deflationary forces.
From: Fortune favours the bold | Registered: May 2001
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DrConway
rabble-rouser
Babbler # 490
posted 22 July 2002 05:51 AM
Great present. I love you.
quote:Keynes was adamant that capital markets were there to provide investment for entrepreneurs, not gambling chips. "Speculators may do no harm as bubbles on a steady stream of enterprise", he said. "But the position is serious when enterprise becomes the bubble on a whirlpool of speculation. When the capital development of a country becomes a byproduct of the activities of a casino, the job is likely to be ill done."
Words to live by.
From: You shall not side with the great against the powerless. | Registered: May 2001
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skdadl
rabble-rouser
Babbler # 478
posted 22 July 2002 09:13 AM
Hmmn. Casinos keep coming up. This interrupts my optimism.
From: gone | Registered: May 2001
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