Re:The Great Pause Was an Economic Revolution
by twblalock on Saturday June 27, 2020 @09:33PM
(#23666126)
There is a big difference between "possible for a few months" and "possible indefinitely". A lot of what we did during the lockdowns was never going to be sustainable.
By the way, the "helicopter money" thing was proposed by Milton Friedman, a libertarian economist who was influenced by Hayek and who was highly critical of most forms of government intervention in the economy.
Re:The Great Pause Was an Economic Revolution
by fuvkthisguy on Saturday June 27, 2020 @09:58PM
(#23666234)
> There is a big difference between "possible for a few months" and "possible indefinitely". A lot of what we did during the lockdowns was never going to be sustainable.
I would be interested to see an argument for this point, because I don't think it stands on its own.
It's funny to read that Hayek compared parts of the economy to organs. I often use analogy of money being blood in human body, to illustrate that from the perspective of each individual cell, blood is a resource, but from the perspective of the whole body, blood is just a transport medium of which it can create any amount required.
And accordingly, body can decide to vasoconstrict (shut down) certain organs in times of crisis. It is a collective decision, not a decision of an individual cell.
So of course, you can shut down parts of the economy. You can also put those people in parts that shut down on a kind of helicopter money support. All those things have always been possible, it's just people were conditioned to think they are not.