To add to the absurdity, they got a Noble Prize for it. And now, a Global Financial Systemic Meltdown as the result. Another example of Katrina where the likes of BushCo, Ray Nagin and heckuva job Brown running the show. This also includes those running Wall Street, the Finance industry, as well all corporations in America. Layoff during a business downturn cycle to exacerbate the recession, seriously, why is this makes sense?
Any system that did not take human nature into consideration will doom to fail, as proven by Communism, and on the other extreme - Free Market Capitalism. This is just commonsensical if you analyze where it went wrong. I don’t need to read a whole bunch of books to tell me this, and I don’t believe anyone out there with such view yet.
From the article, the description of Keynes is in agreement with my thinking of keep people employed - job is the foundation of a strong economy.
That’s why I said we are screwed back in 2004, when I heard 70+% of our GDP is based on consumer while we were outsourcing jobs and factories while importing cheap labors in the form of H1Bs. Who’s going to pay tax and buy stuff? We need to shift to a productivity based economy as oppose to a consumer based economy. This is just commonsense.
My solutions not just creating jobs by rebuilding infrastructure funded by government for this near-collapse meltdown, but also instead of layoff, short the work week for employees and let each employee chose whether they want a layoff or shorten hours. I am still perplexed as to why CEOs and executive management not seeing that layoff would only exacerbate the recession. How do they justify their 100s millions in salary?
Keynes seems to make a lot of sense. [And Keynes considered it a very bad idea to let such markets, in which speculators spent their time chasing one another’s tails, dictate important business decisions: “When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done.”] I might want to read further on this topic if I have the time.