Everyone’s a Keynesian during a snowfall

From the Globe and Mail’s Mark MacKinnon, visual evidence of how China is applying at least part of John Maynard Keynes’ advice about using government spending to stimulate the economy in a recession.

Says Keynes in the General Theory:

“To dig holes in the ground,” paid for out of savings, will increase, not only employment, but the real national dividend of useful goods and services. It is not reasonable, however, that a sensible community should be content to remain dependent on such fortuitous and often wasteful mitigations when once we understand the influences upon which effective demand depends.

Says Mark:

Because you wouldn’t believe me if I said 10 people were shovelling a small play structure (it’s snowing again in Beijing)

var gaJsHost = ((“https:” == document.location.protocol) ? “https://ssl.” : “http://www.”);
document.write(unescape(“%3Cscript src='” + gaJsHost + “google-analytics.com/ga.js’ type=’text/javascript’%3E%3C/script%3E”));

try {
var pageTracker = _gat._getTracker(“UA-11710783-1”);
pageTracker._trackPageview();
} catch(err) {}

Advertisements
This entry was posted in Keynes. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s