you're making the same oversights I mentioned before.
No, I'm not making those oversights because I am a) not a Keynesian and b) not a macroeconomist. My offering defences of this position should not be construed as fundamental agreement that position.
This is quickly turning into a debate about the merits of Keynesianism which is not a debate I am interested in because stabilisation policy is not my field and I don't find it very interesting, I got enough of it at university. I'm going to touch on a few points here, but I'm not going to engage fully with your argument; you really need to talk to a Keynesian macroeconomist if you want to discuss most of this stuff. For one thing my ability to taboo certain words is affected by the fact I don't have a very solid grip on the theory and I don't spend much of my time thinking about high level aggregates like GDP.
Now here's the best I can do on your bullet point questions, sorry if it doesn't help much, but it's all I've got: 1) The difference is that Keynesians believe savings reduce the money supply by taking money out of circulation, this makes them think they are poorer, which makes them act like they're poorer, which makes other people poorer.
2) Because it starts with an illusion of poverty. The first cause of recessions in a Keynesian model is "animal spirits", or in layman's terms, irrational fear of financial collapse. Viewed from this perspective, stimulus is a hack that undoes the irrationality that caused the problem in the first place (and because it's caused by irrationality they can feel confident it is a problem).
3) This is actually one of my biggest problems with Keynesian theory. If it strikes you as counter-intuitive or silly, I'm not going to dissuade you.
One final point: The reason I replied to your initial comment in the first place, was your suggestion that all economists are obsessed with maximising measured GDP over everything else.
But many economists don't deal with GDP at all. When I was learning labour market theory we were taught that once people's wage rate gets high enough, one could expect them to work fewer hours since the demand for leisure time increases with income. There was never a suggestion that this was anything to be concerned about, the goal is utility, not income.
In environmental economics I recall reading a paper by Robert Solow (the seminal figure in the theory of economic growth) arguing that it was important to consider changes in environmental quality along with GDP, to get a better picture of how well off people really are.
I look at what I have been taught in economics, and I simply can't square it with your view of the profession. Some kinds of economists tend to be obsessed with growth, but they tend to be economists who specialise in economic growth. The rest of us have other pursuits, and other obsessions.
Alright, I'll let anyone judge for themselves if the canonical Keynesian replies reveal a truly grounded understanding of what counts as "helping the economy".
you really need to talk to a Keynesian macroeconomist if you want to discuss most of this stuff. For one thing my ability to taboo certain words is affected by the fact I don't have a very solid grip on the theory ...
Forget Keynesian theory for a minute: I want to know if you have the understanding I expect of whatever theory it is you do endorse. Can you taboo that theory's terminolog...
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