Comments on: Obama’s stimulus is “the first real test of Keynesian economic policy” http://welkerswikinomics.com/blog/2009/02/04/obamas-stimulus-is-the-first-real-test-of-keynesian-economic-policy/ for students and teachers of Economics Thu, 09 Feb 2012 09:13:55 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Alex Han http://welkerswikinomics.com/blog/2009/02/04/obamas-stimulus-is-the-first-real-test-of-keynesian-economic-policy/comment-page-1/#comment-7350 Alex Han Tue, 10 Feb 2009 16:57:48 +0000 http://welkerswikinomics.com/blog/?p=781#comment-7350 As I mentioned in Jordan's forum thread, this boost will lead to an increase in supply, lower prices and therefore an increase in demand and consequently an economy in which the money actually starts moving again. Though the world has never really seen this in action, in theory it makes sense in my opinion. I also think that the idea of laissez faire is not very effective when the movement of money has come to a halt and as said in an earlier blogpost, the consumers and producers have no "trust." to spend money. This is a time in which government should actually intervene as Obama said. I also support this idea of Keynes because it is a much more "moral" way of dealing with an economic crisis than what happened in the 1930's: entering war. As I mentioned in Jordan's forum thread, this boost will lead to an increase in supply, lower prices and therefore an increase in demand and consequently an economy in which the money actually starts moving again. Though the world has never really seen this in action, in theory it makes sense in my opinion. I also think that the idea of laissez faire is not very effective when the movement of money has come to a halt and as said in an earlier blogpost, the consumers and producers have no "trust." to spend money. This is a time in which government should actually intervene as Obama said. I also support this idea of Keynes because it is a much more "moral" way of dealing with an economic crisis than what happened in the 1930's: entering war.

Like or Dislike: Thumb up 0 Thumb down 0

]]>