tag:blogger.com,1999:blog-1740670447258719504.post379880422756878680..comments2024-03-18T06:41:03.841-04:00Comments on Facts & other stubborn things: Friends don't let friends read Don Boudreaux on Keynes without critical commentEvanhttp://www.blogger.com/profile/12259004160963531720noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-1740670447258719504.post-68418108765028389572012-05-12T07:31:37.658-04:002012-05-12T07:31:37.658-04:00If all resources are fully utilized, you get infla...If all resources are fully utilized, you get inflation, right? Growth, to be sure - more resources are pulled in over time.<br /><br />Sounds like a lovely problem to have, doesn't it? Full employment, inflation, and demand lead growth.Daniel Kuehnhttp://www.factsandotherstubbornthings.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-35359002613455604662012-05-12T02:18:45.248-04:002012-05-12T02:18:45.248-04:00This is the rest of the paragraph that Don didn...This is the rest of the paragraph that Don didn't post: "As Keynes summarized his new conception in the preface to the 1939 French edition: 'It is shown that, generally speaking, the actual level of output and employment depends, not on the capacity to produce or on the pre-existing level of incomes, but on the current decisions to produce which depend in turn on current decisions to invest and on present expectations of current and prospective consumption.'"Chrisnoreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-12066751744281847332012-05-12T01:44:31.907-04:002012-05-12T01:44:31.907-04:00Alright. I ask because the MEC makes sense at an i...Alright. I ask because the MEC makes sense at an individual level, but I'm a bit unclear about it when it gets aggregated.<br /><br />What I have in mind is an increase of spending on non-durable consumables. From what I understand, this would increase the aggregate MEC and in turn aggregate investment (assuming the interest rate did not rise in proportion). In a system of full-employment, though, it's hard to make sense of what that means. More investment in the Hayekian sense means employing relatively more labor towards the production of future output (and hence more future output). So if you get a rise in spending on non-durable consumables in a full-employment system, you're going to get <i>less</i> investment, simply because you've got to employ more labor to make near-term output. I should think you would get that too in Keynes system (at least when there's no slack), but at the moment, I'm not seeing how.edarniwnoreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-13216140298987009492012-05-11T21:24:31.529-04:002012-05-11T21:24:31.529-04:00The MEC is a subjective factor; it's the expec...The MEC is a subjective factor; it's the expected proceeds he will earn once completing the investment. So, I think it would be okay to assume that an increase in consumption would lead to an increase in proceeds and an increase in the MEC as long as the entrepreneur expects this increase to occur and to exist in future.Jonathan Finegold Catalánhttps://www.blogger.com/profile/16710256011291680376noreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-19938945838032294912012-05-11T17:37:31.069-04:002012-05-11T17:37:31.069-04:00I actually have a question regarding the MEC. Bare...I actually have a question regarding the MEC. Bare with me for a moment.<br /><br />Suppose you have full-employment, and suppose that the interest rate is fixed by the monetary authority. Now suppose there's a rise in consumption spending. If I understand correctly, this implies a rise in the MEC, and in turn a rise in investment. Is that right?edarniwnoreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-15181144123389112352012-05-11T15:29:37.843-04:002012-05-11T15:29:37.843-04:00Fun fact: White is descended through dissertation ...Fun fact: White is descended through dissertation advisers from Keynes: Keynes -> Clower -> Leijonhuvfud -> White.Ryan Langrillhttps://www.blogger.com/profile/15080552998325983982noreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-85478408229712363942012-05-11T11:01:47.151-04:002012-05-11T11:01:47.151-04:00btw - anyone willing to counter any of these claim...btw - anyone willing to counter any of these claims (Don listed A LOT) in a blog post is very welcome to guest post here. I'll look it over first, but you all know what sort of stuff does and doesn't get posted here.Daniel Kuehnhttp://www.factsandotherstubbornthings.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-19256884222048469002012-05-11T11:01:28.486-04:002012-05-11T11:01:28.486-04:00You already said everything I would have said and ...You already said everything I would have said and I lack the patience you have for fighting against the intellectual dishonesty most of these Austrian guys perpetrate.Andrew Bossiehttps://www.blogger.com/profile/00353842153288646125noreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-35265784187860351182012-05-11T10:53:20.865-04:002012-05-11T10:53:20.865-04:00It's quite bad. This was supposed to be "...It's quite bad. This was supposed to be "the serious book on history of economic thought", and I've been told by many that we can expect White to be fair. It's one passage, no context, but it does have me worried.<br /><br />You should comment on Cafe Hayek (you have to friend them on facebook to do it now... strange system). He needs push-back. The man hasn't touched Keynes in a while - I always figured it was because he got such a heated reaction every time (lots from me, to be fair!).Daniel Kuehnhttp://www.factsandotherstubbornthings.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-75610432787434744362012-05-11T10:47:43.145-04:002012-05-11T10:47:43.145-04:00That White quote is amazing in how wrong it is.That White quote is amazing in how wrong it is.Andrew Bossiehttps://www.blogger.com/profile/00353842153288646125noreply@blogger.com