- 08 May 2003 10:10
#10180
I *think* that Marx was the first person to suggest a reason for economic cycles, and that was his reason for it. Later Keynes said it was due to a lack of demand... which is funny because they are both opposite sides of the same coin.
About modern thinking, the monetarist view is definitely the weirdest, and sounds like something the Iraqi information minister would come up with. There is no unemployment, people just don't feel like working right now. It may sound stupid, but that was basically the view adopted in the USA and UK in the 1980s and has more-or-less prevailed since
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Kolzene wrote:In the 1920's a well respected non-profit research group called the Technical Alliance noticed after years of researching industrial and technological progression in North America that it was technology itself that could not only solve the problem of scarcity, but indeed already had. North America no longer had a natural scarcity, but instead became the first area on Earth to acheive a state of natural abundance. The real problem now was that both these countries (Canada and the US) were still using economic systems designed for scarcity environments, and were thus imposing an artificial scarcity on the area. This, they concluded, would cause severe economic problems as technology replaced workers, creating more products (supply) and lowering purchasing power (demand). Since both these factors lower price, the result would be an economic crash (a small example of this can be seen if you ever tried to sell normal air to someone; you can't, it's too abundant). Hence they had predicted the Great Depression within 6 months of when it actually happened (they predicted early 1930).Heh, the belief that overproduction leads to recession actually sounds rather communist Kolzene
I *think* that Marx was the first person to suggest a reason for economic cycles, and that was his reason for it. Later Keynes said it was due to a lack of demand... which is funny because they are both opposite sides of the same coin.
About modern thinking, the monetarist view is definitely the weirdest, and sounds like something the Iraqi information minister would come up with. There is no unemployment, people just don't feel like working right now. It may sound stupid, but that was basically the view adopted in the USA and UK in the 1980s and has more-or-less prevailed since
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