[ExI] More on Health Costs

[Stathis Papaioannou]

2009/5/28 Lee Corbin <lcorbin at rawbw.com>:

> It's very similar to the way that people believe you
> can spend your way out of a recession. Sometimes I
> think that the Keynesians suppose that if we just had
> the right kind of magic pill that everyone could take,
> ---which would simply restore complete full confidence
> in everyone that everything is fine---all the problems
> associated with a recession would disappear.

It probably would: people would work, spend, invest, even write off
debt in confidence that the future would be brighter. And if they had
the right mindset, they wouldn't allow another bubble to form either.
If population, natural resources and new technology are kept constant,
psychology is the one thing left that contributes to the economic
cycle.


-- 
Stathis Papaioannou