tag:blogger.com,1999:blog-1740670447258719504.post7058654140943787182..comments2024-03-27T03:00:27.024-04:00Comments on Facts & other stubborn things: Now this is ironic...Evanhttp://www.blogger.com/profile/12259004160963531720noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1740670447258719504.post-25890050355124685132012-12-27T16:09:04.676-05:002012-12-27T16:09:04.676-05:00Of course everything written in the whole book abo...Of course everything written in the whole book about investment feeds in in some way to the discussion of the socialization of investment twelve chapters later, but this discussion in this chapter is about the entrepreneurs (<i>not</i> policymakers) whose role it is to defeat the dark forces of time and ignorance.<br /><br />I don't see how that is public policy.<br /><br />Socialization of investment (twelve chapters later) of course involves a lot of different things, both public and private. Recognizing the social object of the entrepreneur doesn't rule out that policymakers have good things to do too. But the subject of this chapter is not policymakers, and it reviews both the social and private benefits pursued by entrepreneurs (and the tension between the two, in some cases).Daniel Kuehnhttp://www.factsandotherstubbornthings.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-1740670447258719504.post-9440475989303926272012-12-27T12:07:23.424-05:002012-12-27T12:07:23.424-05:00The whole argument in chapter 12 is one for the so...The whole argument in chapter 12 is one for the social importance of long-term investment, which is at odds with the profit-driven short-term horizon of most investors, hence the beauty contest and all of those analogies. <br /><br />And that point becomes part, though not all, of the reason he wants to *socialize* investment. Keynes, true to his worldview, thinks that the right people with the power to make socialized investment decisions (free from the poor incentives of the profit motive) will get the volume and type of investment more "right" than will private entrepreneurs trapped by the short-run calling of the profit system. <br /><br />We can quibble over whether that's "discretionary economic policy" but it sure as hell is "public policy" is it not? Steven Horwitzhttps://www.blogger.com/profile/00470758334242360804noreply@blogger.com