SilasBarta comments on Open Thread June 2010, Part 3 - Less Wrong

6 Post author: Kevin 14 June 2010 06:14AM

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Comment author: SilasBarta 17 June 2010 05:35:53PM 0 points [-]

I agree that both a) and b) would have a similar effect in that the widget manufacturer puts to work resources (labor, machines) which would otherwise not be utilized. I wouldn't recommend either a) or b)

Then why did you say this, in the very comment I was replying to?

Therefore, the economy would be helped if your choice increases the total amount of money changing hands,

That's the same as recommending a)!

because there are many more efficient ways to stimulate the economy

It doesn't matter that you can think of better ways; the problem is with a view of the economy that regards either of a) or b) as "good for the economy". And you in fact hold that view.

Comment author: MichaelBishop 17 June 2010 09:42:13PM *  0 points [-]

We were asked a sort of odd question which was which apartment choice would help the economy when not taking into account the individuals preferences about apartments. Those preferences in fact dominate the overall effect on the economy. I wouldn't recommend anyone personally attempting Keynesian stimulus.

Increasing the amount of money changing hands only helps in certain circumstances, and even then it is not necessarily the dominant effect.

What about the examples of intelligent stimulus I offered?