Bob Cropf

Is more spending the solution?

In miscellaneous on February 5, 2009 at 11:26 AM

Hi everyone!

I thought this article was pretty interesting and relevant to what we have been talking about in class. Two local economists, David Rose and Lawrence White, challenge the assumptions of a “Keynesian cause and a Keynesian cure” regarding the current recession and advocate for a classical, free market approach to fixing the economy.

Click here for article

(I’m not sure I agree with everything they say, but it is an interesting perspective)

-Colleen

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  1. A perfect example of classical thinking down to the comment, “In reality, excessive money growth drove asset prices up and drove interest rates down, making people feel richer than they really were and lowering the cost of borrowing money to facilitate more spending.” If there is anyone else who believes this is the sole reason for all our current economic woes besides the neo-classicals, I haven’t come across any. Thanks for the link.

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