Comments on: Keynesian/Classical debate enters the realm of hip hop http://welkerswikinomics.com/blog/2009/12/28/keynesianclassical-debate-enters-the-realm-of-hip-hop/ for students and teachers of Economics Wed, 08 Feb 2012 23:39:55 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Bjorn B http://welkerswikinomics.com/blog/2009/12/28/keynesianclassical-debate-enters-the-realm-of-hip-hop/comment-page-1/#comment-9883 Bjorn B Thu, 21 Jan 2010 22:10:04 +0000 http://welkerswikinomics.com/blog/?p=1449#comment-9883 Bjorn, I agree with what you said. Whilst I also understand that helping the banks does not punish them for having taken too many risks, I think it would be even worse to let these banks fall. Not only will we have thousands of jobless bank employees, but thousands of people would loose their hard earned money. Many people suggest that smaller healthy comanies, who simpy have an issue with cash flow (and cant get loans), could use this fiscal stimulus much more efficiently. Sadly however, the government has to turn us into statistics, and decide by judging which method will save the largest amount of jobs. Bjorn, I agree with what you said. Whilst I also understand that helping the banks does not punish them for having taken too many risks, I think it would be even worse to let these banks fall. Not only will we have thousands of jobless bank employees, but thousands of people would loose their hard earned money. Many people suggest that smaller healthy comanies, who simpy have an issue with cash flow (and cant get loans), could use this fiscal stimulus much more efficiently. Sadly however, the government has to turn us into statistics, and decide by judging which method will save the largest amount of jobs.

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]]> By: Bjorn Kvaale http://welkerswikinomics.com/blog/2009/12/28/keynesianclassical-debate-enters-the-realm-of-hip-hop/comment-page-1/#comment-9881 Bjorn Kvaale Thu, 21 Jan 2010 21:15:17 +0000 http://welkerswikinomics.com/blog/?p=1449#comment-9881 The rap video was very intriguing and reflected upon the major Keynsian and Classical views. During our "great recessions", the Keynsian ideals have been used a great deal in order to push ourselves out of the recession. According to Keynes, in the long run we're all dead anyway. Although the Classical view may be correct and the market will self-correct itself, it might take much longer than it will with the extreme stimulus packages implemented by many governments. By increasing the government spending, the aggregate should be increased in theory. Take the USA for example. If the US had let the major car brands go bankrupt, it would have created a ripple effect that would have effected all of the suppliers of the major car brands in America. That way, many more people would have lost their jobs and made the recession even worse than it is now. The rap video was very intriguing and reflected upon the major Keynsian and Classical views. During our "great recessions", the Keynsian ideals have been used a great deal in order to push ourselves out of the recession. According to Keynes, in the long run we're all dead anyway. Although the Classical view may be correct and the market will self-correct itself, it might take much longer than it will with the extreme stimulus packages implemented by many governments. By increasing the government spending, the aggregate should be increased in theory. Take the USA for example. If the US had let the major car brands go bankrupt, it would have created a ripple effect that would have effected all of the suppliers of the major car brands in America. That way, many more people would have lost their jobs and made the recession even worse than it is now.

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