Past the Ring II

Here’s a good assessment of the state of the World’s economic situation…

Leftish economists still believe in Keynesian economics, while rightish economists hew towards what are called Austrian economics.  Jim’s comments align better with the Austrian school.  Keynes advised governments to spend their way out of Depression in the 1930s.  The Austrians consider that a sin against Capitalism, and think that anything governments do will distort the sanctity of the “Real” World.  Rightish folk have been crowing for a while now about how the failure of Obama’s efforts to goose the American economy is proof that Keynesian economics don’t work, ignoring the fact that most of Obama’s “Keynesian” efforts consisted of giving the Treasury away to the Banksters, who promptly parked it overseas so they wouldn’t have to pay taxes on it.

Problem is, both Keynesian and Austrian approaches are needed, but as with other Fundamentalists, the two schools would rather go hungry than concede any validity to the other.  Europe is in the process of proving once again that Austerity does not solve the problem of excess debt, it just destroys a society’s productive capacity.  And Bernanke is busy proving that pouring money from a helicopter doesn’t work either, as it just fuels more Avarice.  You’re supposed to apply a Keynesian approach before the debtload is unmanageable, not after.  One intermediate approach (which Obama gave only very half-hearted attention to) is funding publicly owned infrastructure.

I’d regard the Hyperloop…

as just another new untested hypertechnology like so many others floating around out there, except that this is Elon Musk talking, the man who created the Tesla electric car and delivered a full cargo capsule to the International Space Station in his SpaceX rocketship.

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