Rich Retirees Are Hoarding Cash Out of Fear

Re:Rich Retirees Are Hoarding Cash Out of Fear by oppositelock on Tuesday May 16, 2017 @08:01PM (#14354451)

Which eminent economists? You get two of them in a room and you get three different opinions.

Here's one economics PHd wielding economist refuting the paradox of thrift. http://www.econlib.org/library/Columns/y2009/Murphythrift.ht...

Here's an eminent one refuting it, in case the Nobel prize counts: https://mises.org/library/hayek-paradox-saving

Here's my issue with Keynesians and neo-Keynesians. They have zero concept of capital, it's all about cash flow - spending, saving, debt. They stimulate by printing, temper by taxing, etc.

They ignore the effects of such behavior on capital, and end up amplifying the cycles they try to prevent. This ties into monetary policy and deficit spending as well, but that's way too much of a tirade for Hacker News.

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Re:Rich Retirees Are Hoarding Cash Out of Fear by FabHK on Thursday May 18, 2017 @12:52PM (#14368817)

As I said, it's contentious, and Nobel-price-level economists are wrangling with it. That's why I'd be careful making definite statements about it casually. Note that Hayek wrote nearly a decade before Keynes, nearly a century ago, and Keynes has held up remarkably well in the last decade.

The invocation of Say's law strikes me as insufficient to strike down the paradox of thrift.

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