To libertarians / Rand clones - Page 7

tylerdurden · #61 12-11-2005, 02:32 AM

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Are you claiming that inflating the money supply is "good for the economy" ?

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No, I'm just saying that there are ways of increasing GDP that don't really do anything useful.

Borodog · #62 12-11-2005, 02:32 AM

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Keynsian economics works.

If by "works" you mean never-ending malinvestment booms and inflation alternating with crashes, recessions, and depressions characterized by high unemployment and business failures as the market attempts to liquidate those malivestments, then sure. It "works."

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It temporarily raises GDP at an overall cost.

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And this is a good thing how?

Borodog · #63 12-11-2005, 02:33 AM

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Are you claiming that inflating the money supply is "good for the economy" ?

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No, I'm just saying that there are ways of increasing GDP that don't really do anything useful.

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Sorry, by "you" I actually meant Tom there. My apologies.

tylerdurden · #64 12-11-2005, 02:33 AM

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Furthermore, manufacturing tanks and uniforms is a double whammy on the economy, as these "goods" (I would call them bads) are virtually guaranteed to totally depreciate within a few years.

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So according to you, going from making 300 airplanes a year to making 100,000 airplanes a year is bad for the economy because the airplanes depreciated either immediately or within a few years.

And so therefore it is also bad that our computer companies produce and sell several million computers per year, since these are guaranteed to depreciate within several years as well.

err, huh?

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Except that those computers, while they are depreciating, do work that people actually value.

BCPVP · #65 12-11-2005, 02:36 AM

I'm impressed with how this thread turned out. From a stupid question in the beginning to a fairly intellectual debate about economic policy.

Now if only all the dumb threads started here could turn out so well...

tylerdurden · #66 12-11-2005, 02:37 AM

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It temporarily raises GDP at an overall cost.

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And this is good? I can see making an argument for it *if* GDP were *exactly* the same thing as "economic health*, but it's not. As you've shown, you can manipulate GDP without actually doing anything useful. Therefore, not everything that increases GDP is "good".

Generally, having a body temperature of 98.6 is good. If you get a fever, I can get your body temperature to 98.6 by shooting you in the head then placing your body on a heating plate set at 98.6. Hey, I got your body temperature to the desired number, it must be a good thing, right?

#67 12-11-2005, 02:38 AM

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So, just to clarify, after a war, the country is in worse economic shape?

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Given the general term "economic shape" this really isn't a matter of opinion. You know the dates of major US wars. Can you not simply look at a US GDP (the ultimate "general shape" indicator) trend chart and look at the dates following our wars and come to your own conclusion?

TomCollins · #68 12-11-2005, 02:39 AM

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Keynsian economics works.

If by "works" you mean never-ending malinvestment booms and inflation alternating with crashes, recessions, and depressions characterized by high unemployment and business failures as the market attempts to liquidate those malivestments, then sure. It "works."

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It temporarily raises GDP at an overall cost.

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And this is a good thing how?

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I never said it was good. However, it is a nice secondary benefit when other reasons dictate massive spending.

#69 12-11-2005, 02:40 AM

I did this. What do you think my results were?

TomCollins · #70 12-11-2005, 02:43 AM

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It temporarily raises GDP at an overall cost.

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And this is good? I can see making an argument for it *if* GDP were *exactly* the same thing as "economic health*, but it's not. As you've shown, you can manipulate GDP without actually doing anything useful. Therefore, not everything that increases GDP is "good".

Generally, having a body temperature of 98.6 is good. If you get a fever, I can get your body temperature to 98.6 by shooting you in the head then placing your body on a heating plate set at 98.6. Hey, I got your body temperature to the desired number, it must be a good thing, right?

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Notice I never made a value judgement about good or bad. If I say "shooting somoene in the head will usually kill them" doesn't mean I advocate it.