tag:blogger.com,1999:blog-431145748578694023.post431539715265005533..comments2024-03-29T00:44:28.737-07:00Comments on What Paul Gregory is Writing About: Mafia in Pinstripe: The Real GE ScandalPaul Gregoryhttp://www.blogger.com/profile/11438975758018323872noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-431145748578694023.post-3399786660469510352011-04-16T16:10:39.511-07:002011-04-16T16:10:39.511-07:00Continued from above...
A Keynesian would argue t...Continued from above...<br /><br />A Keynesian would argue that with demand for goods soaring, companies should increase production. Unfortunately, the projects creating such unsaleable goods have utilized the idled capacity of the economy. Labourers, material, and equipment can be had at a premium, not a discount. For most firms there may be little profit in expanding production and great profit in simply raising prices.<br /><br />Keynesians would argue that most government expenditure yields some value for the nation. Certainly true. However, within public finance<br />there is meager cost and benefit analysis. There is some accounting of the financial costs of public endeavours, often vague and erroneous and usually bearing many an upward adjustment. Yet, an honest accounting of the financial benefits of public enterprise is<br />notoriously absent.<br /><br />There are always costs in the things that we do and there are always benefits. In every decision, we labour at making benefits exceed<br />costs. Had the public expenditure lowered costs or increased revenues for business or diminished prices for the consumer or enlarged his income, by an amount exceeding the funds invested and capital charges,<br />then one may declare the expenditure a success. Until the authorities and economists develop a system and its tools, returns on public expenditures must always be scant or negative.<br /><br />What course would best benefit a nation in recession knowing the present delinquencies and ruinous nature of public expenditure?<br /><br />In economic crisis Government should avoid the use of any resources in equipment, material, and labour unless an evaluation of costs and benefits justifies the undertaking.<br /><br />Put money into the hands of those that know best how to right their financial ship and expend on worthy goods. Put money into the hands of those persons and firms that know well and can produce the items valued by the markets Lower the taxes on many activities and objects, and the nation will thrive. Lower or abolish the income tax and<br />corporate tax, and marginal endeavours shall become profitable, and profitable endeavours far more so. Let the government maintain their<br />present spending and erase taxes. William Gladstone spoke of the reproductive effect of tax cuts on government revenues. He could never quite believe how fast subsequent tax revenues erased and surpassed the created deficiency. That was 150 years ago.<br /><br />Offer financial aid to the idle: A loan for living and schooling expenses to enhance education or a loan to cover the unemployed until the recovery begins. The individual will then be able to decide the best course given his circumstances. If the recovery provides a worthwhile position, the worker will have little reason to ignore it. The student as well.<br /><br />The problem is a lack of worthy production, not a lack of aggregate demand. By limiting saleable and desired production with harmful make work projects, the nation is poorer with the result. By encouraging worthy production and limiting harmful public expenditure, the nation is wealthier with less competition for desired production.Economarthttps://www.blogger.com/profile/10614069108807324267noreply@blogger.com