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January 19, 2008


Sounds like Keynesian economics, which free-market economists look on as heresy.

'Keynes argued that the solution to depression was to stimulate the economy ("inducement to invest") through some combination of two approaches:

* a reduction in interest rates.
* Government investment in infrastructure - the injection of income results in more spending in the general economy, which in turn stimulates more production and investment involving still more income and spending and so forth. The initial stimulation starts a cascade of events, whose total increase in economic activity is a multiple of the original investment.'


So-called "free-market" economists live in a fantasy world. I am not interested whether such persons disapprove of Keynesian economics. Investment in infrastructure made this country rich and gave us a middle class.

Free market economic ideas usually just mean jiggling the market to allow the powerful a free hand to reap profit and contribute nothing to humanity or the planet. The alleged freedom of the market is a myth and has never existed. There are always controls, regulations, supports to one player or another.

I know, I don't believe in free-market economics either.

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