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Thursday
Feb 09th

Interest Rate Reductions vs. Govt. Spending

A Keynesian will say spend Govt. money to increase the demand, the anti-Keynesian to reduce interest rates, and give tax brakes to the wealthy so they will expand their businesses. Despite the supposed democracy, the rich have a greater influence on what happens than the ulturistic, through their leverage in political donations and the control of the media - so its not suprising that the rich get extra tax breaks whilst the average person looses their home. My recipe for success would be: 1. More economical elections; restructure the election system, and add compulsary voting (like in Argentina, Australia, Brazil, Chile, Turkey), why waste money encourageing people to vote. 2. Give all full-time employees annual leave, that they can't loose (like in Australia) - so they'll spend their money in small town businesses, that currently suffer from a lack of manufacturing etc. If people spend on local tourism rather than buying imported goods, it will further stimulate the economy, as the money moves around internally between different businesses. 3. Set up a council of philosphers/thinkers who have no stock market bias to provide ideas on things, rather than relying on politicians & Wall St. 4. Look after the interests of the average person, rather than hope that business will - their interest is to maximise the profits to their stock-holders, not the welfare of the US citizen. Why do some Americans retire in Spain - to get away from the rat race - make it less of a rat race. 5. Spend government money on things that will improve the efficiency of US manufactuire etc later down the track - improved transportation, better communications, more efficient power (once the initial govt. capital is spent) such as Geothermal. Spending money to satisfy environmentalists and other interests groups, without increasing the efficiency of doing business in the US is pure politics, and a waste of taxpayers money (maybe we need a ultruistic King, like in Thailand ??.. Socrates' Philospher King comes to mind). .. All-in-all a little less Capitalism, and a little more Soicialism, I think will be the recipe for success. Communism is gone, time to soften our philosophical enthusiam for narrow-minded captilism (which doesn't look after the average person).

 
This is a comment on "Keynes, Obama and the future"

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