[ExI] Belief in Market Efficiency

[Gordon Swobe]

--- On Sun, 2/8/09, Frank McElligott <Frankmac at ripco.com> wrote:

> At present there are two views fighting in Washington, 
> Keynes says have the government throw money at problem and
> the people will spend it, and then free capitalism which
> says let the marketplace(the strong survive) and we will
> have touch times but be stronger in the end.

It seems to me that both sides want some Keynesian deficit-spending. They differ mainly on how much to spend, and how to spend it.

Former presidential candidate and conservative Mitt Romney appeared on television a few weeks ago. He argued that because both businesses and consumers have sharply cut spending, reducing aggregate demand, there exists an urgent need for the government to step in immediately as the demander of last resort. Sounded like a passage right out of Keynes.

(As others have pointed out, this thread has a misleading subject line. Better would be "Belief in Laissez Faire Capitalism".)

-gts