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DailyKos: State of the Nation
On stimulus, Keynes wrote, “Pyramid-building, earthquakes, even wars may serve to increase wealth, if the education of our statesmen on the principles of classical economics stands in the way of anything better.”
He knew that there are better ways to stimulate economies than piling up rocks or killing each other. But if politicians can’t support smarter policies, piling up rocks will have to do.
Hayek, OTOH, says, “Look at how people will respond to these perverse incentives. If we start spending billions of dollars building pyramids, pretty soon we’ll have entrenched pyramid lobbies, pyramid schools cranking out stone cutters and sled pullers and ramp maker unions living off pyramid building.”
In the long run, we’ll end up hostage to the pyramid-industrial complex and the economy will be hobbled.
— DailyKos article explaining Keynes vs Hayek economic theories.
You know that reading anything which suggests the formation of a new pyramid-building class is worth the investment in time.
( via: davidjamessmith )
