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If we think for a moment, that Keynesian economics try to solve a real problem, I think the idea behind it is the following.

Market cycles are given. We have seasons, and you have different needs e.g. for different seasons. Also there are the natural catastrophes, that influences or creates new cycles. Also we could find many more reasons to have cycles. Even human life has cycles. So let's accept this for a moment, that with or without Keynesian economics, we have cycles and these creates economic cycles. Cycles of boom and bust.

The argument behind keynesian economics could be to ease these cycles. To decrease the severity of the storm with the price of decreasing the upside part. So to have less severe downturn in return for having less upturns.

I think this would be an argument for Keynesian economics from the FED or from whomever.

But the reality is the opposite. Somehow the possibility of printing money is not easing the downturns, but increasing artificially the upside, that leads to more severe downside. So seemingly it acts totally the opposite way then it intends to be used. In extra, it also increases the wealth gap.

So all in all, does it make sense to USE a tool, that could be used for good things, that is eventually happen to be used wrongly and cause bigger issues then there were?

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Discussion

Bodhi☯️ 2y ago

Yep the worst economic meltdowns happened since Keynes ideas were employed as the de facto economics. Says a lot to me. Now that we've gotten ourselves so deep in this hole of debt expansion, they literally can't do anything but kick the can or face near total collapse. If they would have let banks fail in 08 we might still have a chance with this system but we are getting to watch it fail now in real time unfortunately.

Code & Psychology ⚡️ 2y ago

True!

And people don't even learn from history in this regard. The debasement of currency happened already in history, world leading nations also changed.

So many currencies already collapsed, and were replaced by new currencies, and people still accept the current ecomonics.

And this is not the only problem we have to face in the next couple of decades.

But as the saying goes, if you make people poor, they will concentrate to earn the minimum wage to live, instead of changing the system.

But the danger I see is, that in such scenarios, when polarity is so high, people are suffering, people are more susceptible to leaders who find people to blame, and tell that they will solve everything.

Bodhi☯️ 2y ago

We have a real problem with not learning our lessons collectively. I think the desire to trust your governed and institutions in power is just strong for most people because they for one don't want to take the time to question mental, emotional, social, and environmental factors that shake traditions, beliefs, and views. Secondly like you said they don't get the time when the focus is high time preference survival.

Code & Psychology ⚡️ 2y ago

True!

Also education is controlled by the people, who has the interest to keep other people where they are.

But if we put this aside, one other big problem is, that usually these cycles are bigger then a person's life. Therefore, you don't know what to expect, because you haven't seen such before. And that is why the following saying is good:

Hard times create strong people.

Strong people create easy times.

Easy times create weak people.

Weak people create hard times.

Because these steps relates to cycles, and e.g. when easy times hit, the strong people already passed away, who knows what caused the problems to them, and what shall not be done. But the people who influence the current cycle has no clue, what will happen if they do what is easy. And it is kind of evolutional to go for the least resistance.

We have to admit, that facing a crisis takes courage, harder, then just inflating away money, that people only will see a few years later, when you are anyway not governing. So why not give free money, let people love you, and let other people to take the responsibility for ruining the populations life later.

Bodhi☯️ 2y ago

Yea that's very true, easier to make the same mistakes over and over when the lifespan of people is sort so we tend to repeat those lessons over and over. That's really interesting when thinking about the 4th turning 80 year cycles.

Bodhi☯️ 2y ago

Also yes that last part is the scary part because psychopaths and sociopaths know how to exploit these people and you end up with the worst tyrants in power as a result.

Bodhi☯️ 2y ago

I always come back to this quote from Douglas adams.

it is a well-known fact that those people who must want to rule people are, ipso facto, those least suited to do it.

To summarize the summary: anyone who is capable of getting themselves made President should on no account be allowed to do the job.

To summarize the summary of the summary: people are a problem. And so this is the situation we find: a succession of Galactic Presidents who so much enjoy the fun and palaver of being in power that they very rarely notice that they're not.

Bodhi☯️ 2y ago

I think it's possible for bitcoin to balance out the debt expansion as we transition though. I think there will be a time period where btc and the dollar are friends. I save in bitcoin and spend in dollars naturally because of greshams law.

PrismPosts 2y ago

💥 prism created 💥

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