Thread: Political Polls
View Single Post
Old August 4th, 2009, 05:24 PM  
Join Date: June 6, 2009
Location: New Zealand
Gender: Male
Default Re: Political Polls

You do make some very good points however some were not all that relevant to my original comment. When I said that the United States would be in a better state today if it had followed a Keynesian model I was referring mostly in terms of poverty. I do not disputed the fact that the overall GDP of the United States would be lower. However as an environmentalist social democrat I personally believe in 'people before profits' and income redistribution as well as a green economy, while I suspect you lean more to the right of the centre towards classic liberalism?

Further more I did not suggest that the United States follows Austrian school it is simply much closer to Austrian school then other Western Democracies. It is true that the United States follows a mixed economic policy with basic Keynes prinicples but I believe the big problem was that the Bush adminstration tried to do both by throwing more money at Medicare and the Iraq war as well as tax cuts for the wealthiest Americans trying to please both Moderates and Libertarians and in the end pushing the States futher into debt this is the view followed by many economists in the Obama adminstration.

I also disagree that Keynesian economics are the only reasons for the recessions in the UK and US of the 80s. Living standards had grown to a point where the birth rate began to drop leading to an aging workforce as well as high unemployment was too much for the welfare state to cope with. However the growing unemployment in Manufactoring and mining was partially becuase of the strength of the pound and the dollar. This I agree with you was something which the model was not ready to adapt to but is not eniterly responsable for.

I go back to my original point the United States is in a far worse state economically than many other countries that followed the Keynes model at the start of this recession and have followed stricter Keynesian principals a 'shining' example is Australia. The stimilus package released by the Rudd Government at the beginning of this recession has lead to recovery and has meant that Australia I believe is the only Western democracy in the world that is not in recession. The package included investment in local government with the condition the money was spent within 6 months of the federal government issue. As well as maintaining high expenduture in Education and health.

Sorry this comment is in such a mess, I'm tired and need to get back to bed.
boy.on.laptop is offline   Reply With Quote