Re:Battery technology may emerge as a trillion-dollar threat...
by Gibbon1 on Sunday October 23, 2016 @04:36PM
(#12775306)
> the broken window fallacy is a mainstay of Keynesian economics
No that is actually not true. You'll find the broken window theory espoused by dingbat modern economists[1] and business people[2] but not hoary old Keynesians and NeoKeynesians. Keynesians believe somethings different which is that if you have a demand and production shortfall due to excess debt and fear (dread zero bound), then the government can help by creating demand. AKA borrow money to pay for labor and materials and use that to build useful stuff. Experience from WWII in the US shows that it'll work even if the stuff is not very useful.
[1] Because modern economics isn't an applied science practitioners are allowed to believe what they want about the real economy.
[2] Leaned about the broken window theory at the country club bar.
No that is actually not true. You'll find the broken window theory espoused by dingbat modern economists[1] and business people[2] but not hoary old Keynesians and NeoKeynesians. Keynesians believe somethings different which is that if you have a demand and production shortfall due to excess debt and fear (dread zero bound), then the government can help by creating demand. AKA borrow money to pay for labor and materials and use that to build useful stuff. Experience from WWII in the US shows that it'll work even if the stuff is not very useful.
[1] Because modern economics isn't an applied science practitioners are allowed to believe what they want about the real economy.
[2] Leaned about the broken window theory at the country club bar.