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"If the Treasury were to fill old bottles with banknotes, bury them at suitable depths in disused coalmines which are then filled up to the surface with town rubbish, and leave it to private enterprise on well-tried principles of laissez-faire to dig the notes up again (the right to do so being obtained, of course, by tendering for leases of the note-bearing territory), there need be no more unemployment and, with the help of the repercussions, the real income of the community, and its capital wealth also, would probably become a good deal greater than it actually is. It would, indeed, be more sensible to build houses and the like; but if there are political and practical difficulties in the way of this, the above would be better than nothing.
-- John Maynard Keynes
This sounds like a questionable model, doesn't it? But it does seem to get at the heart of the Keynesian notion of government making up for demand. This is our best wisdom. Kinda scary, no?
Though, I suppose Obama's stimulus bills tighten the rationality, by supplying the means for government to continue to provide services and goods, as well as for unemployed people to supply themselves - keeping money and goods circulating. But it still sounds problemsome, like we've always been living on a flawed model, but I guess it's no secret that we never lived in a perfect world, and hard times only expose the weaknesses more openly.
-- John Maynard Keynes
This sounds like a questionable model, doesn't it? But it does seem to get at the heart of the Keynesian notion of government making up for demand. This is our best wisdom. Kinda scary, no?
Though, I suppose Obama's stimulus bills tighten the rationality, by supplying the means for government to continue to provide services and goods, as well as for unemployed people to supply themselves - keeping money and goods circulating. But it still sounds problemsome, like we've always been living on a flawed model, but I guess it's no secret that we never lived in a perfect world, and hard times only expose the weaknesses more openly.
