Jump, Frog, Jump!

Posted by straightlinelogic 9 years, 7 months ago to Economics
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This is an excerpt, the full article may be accessed by clicking the link above.

Keynes’ theories should have been buried with Keynes when his long run ended, thereby validating his famous quote. Straighlinelogic and many others have undertaken the not arduous task of demonstrating their preposterousness. However, secular stagnation theory, ostensibly about economics, reveals its proponents’ predatory predilections.
SOURCE URL: http://www.straightlinelogic.com/straightlinelogic/Blog-The_Latest/Entries/2014/9/22_Jump_Frog%2C_Jump!.html


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  • Posted by Zenphamy 9 years, 7 months ago
    Straight: I very much agree with your statement that the 'Soft Socialist's' (my description) Keynesian economic understandings, schemes, and manipulations are preposterous and damaging to an economy of a people with liberty and operating under guidelines of free market capitalism or any other.

    But without detracting from your excellent essay, I'd like to look further at your conclusory statement; "Economic growth is a consequence of government protected liberty and capitalism—the economics of liberty—as natural as the eternal and hard-wired human drive to improve one’s situation."

    Rather, I would like to propose that; 'Economic growth is THE consequence of LIBERTY under self initiated governance serving only to protect that liberty and explicitly excluded from involvement in the economic activity of liberty and a free market that naturally evolves from a free people'.

    I'm bothered by the implication that government activity, either direct or indirect, can contribute to economic growth, or that the capitalism of free people and a free market require government intrusion generated from the protection of capitalism. It's my belief that no government or those in government with the authority to 'protect' capitalism can resist the opportunity to interpret and expand in such a way as to apply their own definitions and interpretations and wishes to influence or control the economics of a country or community. If a government can involve itself in any way with an economy, liberty and a free market cannot last.
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    • Posted by 9 years, 7 months ago
      Government activity does contribute to economic growth. A proper government protects property and contract rights, and provides its citizens with security from violence, either internal or external. I think your proposed quote makes that more explicit than my point, but I don't agree with your statement, "I'm bother by the implication that government activity, either direct or indirect, can contribut to economic growth..." Protection of rights, the protection of liberty, is a government function, and it provides the foundation for economic growth.
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      • Posted by Zenphamy 9 years, 7 months ago
        I understand and agree with your points, but only if government is strictly limited to providing that protection as related to individual and natural rights (which include the right to own property, to make and enforce contracts, and to conduct business as the individual sees fit). But I maintain that 'protection of rights and liberty' isn't what provides the foundation for economic growth--it's the actual rights and liberty and the exercise thereof that are the true foundation.

        I realize that it may look like we're only arguing about semantics, but it remains that government at any level, if ever allowed to perceive or project itself as having a duty to 'protect' the economy or as contributing to economic growth or the type of economy, will inevitably do exactly as it has to America. The major battles between the Federalists and the Anti-federalists really boiled down to that basic concept of, 'what extent would government contribute to the economy through it's actions/in-actions and at what level would control of the economy be implemented'. Much of the arguments centered around a national bank and control of commerce including foreign, inter, and intra state. Anti-federalist really wanted that control at the 'individual level' but compromised to 'at the state level' seeing that as least more local than federal, but in doing so, left the door open for federal and political control. That was a significant mistake and loss to individual liberty and economic growth.

        It's my firm belief that " Protection of rights, the protection of liberty, is a government function," misplaces the true responsibility of such function -- that it's actually the responsibility of the individual and that government should only serve the function of protecting the individual natural right of a free man regardless of it's impact on economy or other.
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  • Posted by CircuitGuy 9 years, 7 months ago
    If technology leads to higher output per hour worked, I would expect *higher* growth. If we consistently see low growth, I see how cronyism and taxes are prime suspects. People said this about Japan in the 90s-- Japan's banking system is beset by cronyism, unlike [so we thought] Western banking systems.

    I agree with the parts about cronyism, but I don't see how any of this is related to Keynesian theory.
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