I found it kinda weird that this day, June 5th marked Both the birth of John Maynard Keynes (1883) as well as the death of Ronald W. Reagan (2004). I mean statistically speaking we only have 366 different days so...no big deal, but I think it is kind of ironic.
For those of you who don't remember your macroeconomics class, John Maynard Keynes was the famed British economist that first espoused the ideas of governmental participation in tightly regulating the economy. The Keynesian school of thought is that the government can control factors such as unemployment, inflation, and recessions by adjusting its spending; so-called Demand Side economics. Proponents point to the New Deal era and how successful it was in pulling the country out of the Great Depression almost exclusively from the employment of Keynesian theory.
President Reagan as you may remember employed the opposite theory in his economic policy. He is probably the most famous advocate of this idealism. The policy of 'Laissez faire' ; literally: 'hands-off' dictates that the government should not intervene and simply let the free market set the price of goods and services in addition to providing incentives(tax leniency, rebates etc.) to those who produce goods. This will "trickle down" to the populous and create prosperity from the top-down. This is referred to as Supply Side economics. This is is all, of course, a very very simplistic overview of the ideas but I am sure most of you have clicked on to another page by now and the remainder may be dozing off, so allow this to suffice; but it truly is fascinating stuff.
Those of you who know me, know I can be pretty geeky - especially about all things mathematical. Economics has always been something that fascinated me. But I must admit the more I learn about the subject it seems the less I understand. I do take some solace in the fact that the leaders of the economics world (all of whom are significantly smarter than me) are fractured into several schools of thought on what is the "best" policy.
No longer an intern (The Salt Lake Tribune, 7/6/13)
10 years ago
5 Comments:
"i can be pretty geeky" doesn't begin to describe it
love ya
<3Megg
Be careful about throwing stones young lady. Half of your chromosomes are "geeky". That makes your house pretty see-through.
You are "pretty geeky" but you're also right - it is some interesting stuff. We touched on this subject in a class I had about a year ago and the discussion quickly devolved into Democrat vs Republican. My thinking was that supply side didn't sound like a bad idea in theory, provided that the "trickle down" actually trickled down. It seems that most of it stayed up top with the rich and the rest of us were just screwed (remember, we were in that "economically challenged" neighborhood at the time).
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