Wednesday, September 17, 2008

Oh Keynes...

Keynes is amazingly brilliant. If anyone could make me believe that economics is alright, it is Keynes. Through these several essays he is able to diagnose and describe the downturn in the economy, effectively explaining what is wrong and how to fix it in everyday language. I admire his ability to step back and look at the big picture, a skill that has yet to permeate my entire life. In one fell swoop he accurately diagnoses the entire problem of the Great Depression and offers a solution. You all might think I am a nerd for this, but he reminds me of Dr. House. I loved the way he can explain through a series of simple questions the "magneto trouble" that the economy is facing. It's all so logical when you take out the passions of the people. To him it's just a simple lack of investment into new capital because the market for capital goods is unappealing.

Another thing I like about Keynes is that he is willing to take a chance and at least try a solution before giving in and leaving things as they were. Even if his solution is wrong it can't hurt to try, especially if the economy is already in that bad of shape. At least there was some effort by him to remedy the solution and not just sit by and let your country go to shambles. This active involvement is something I advocate and it makes me lean towards classifying Keynes more as a searcher and a little less on the planner side. Perhaps we've found a balance in Keynes between a will to act to remedy the problem but also take into consideration the wider consequences like true planners would do first.

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