tag:blogger.com,1999:blog-6867343265106830137.post2511382962198471141..comments2023-07-19T05:26:41.766-07:00Comments on RYviewpoint: Does this Scare You?RYviewpointhttp://www.blogger.com/profile/06689453255540643963noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6867343265106830137.post-27279655834835702732008-10-17T08:03:00.000-07:002008-10-17T08:03:00.000-07:00This guy is a professor, but not an expert in the ...This guy is a professor, but not an expert in the relevant field, i.e. economics and/or finance.<BR/><BR/>He makes flagrant statements that spread fear and are unsubstantiated:<BR/><BR/>(1) Governments will undertake "austerity measures". <B>False</B>, Keynes taught that the government must act counter-cyclically, i.e. be the buyer of last resort to keep the economy from falling into a depression.<BR/><BR/>(2) This crisis will reverse economic advances. <B>False</B>, progress may be slowed but we won't go backwards.<BR/><BR/>(3) This crisis will set the world and the US back a decade or so. <B>False</B>, nobody knows the future, but it is likely this will be a bad recession but probably won't be as bad as the recessions of the 1970s/early 1980s because governments are being more proactive.<BR/><BR/>This guy is jumping on the Chicken Little theme of "the sky is falling". He provides no new information. He is simply fear mongering. I'm ashamed that Greg Mankiw would promote this guy as having anything worth listening to!RYviewpointhttps://www.blogger.com/profile/06689453255540643963noreply@blogger.comtag:blogger.com,1999:blog-6867343265106830137.post-64212933004144664582008-10-17T05:25:00.000-07:002008-10-17T05:25:00.000-07:00I don't understand the severity of the Professor's...I don't understand the severity of the Professor's observations. Clearly the enormous cost of the various bailouts here and abroad will result in taxpayers keeping less of their income as the borrowing is satisfied with increased taxes. This will leave less for consumption and growth of GDP but it would seem that there would still be a growing GDP, albeit at a relatively lower rate. I can understand that such a condition will restrict programs to assist underdeveloped countries or even the less fortunate here in the USA as well as some belt tightening, as it were, among the middle class. But it seems that the Professor's observation anticipates a world with far more draconian effects than what I have described and it is that incremental effect that I don't follow. Can anyone help me here?Anonymousnoreply@blogger.com