Sunday, November 30, 2008

In Times Like These: Lord Keynes in 1932



Almost everybody who is talking about the current global financial crisis is referring to the troubles of the 1930s. It therefore has been interesting for me to read what were on the minds of influential economists of that era, and, indeed, as far as Lord Keynes is concerned, of all time. Attempting to share views and offer a solution to the crisis, he penned an article titled "The World's Economic Outlook" in the May 1932 issue of The Atlantic Monthly magazine (one of my favourite magazines). Click the link and enjoy.

In the meantime, check out his concluding paragraph:

"Nothing could be a greater advantage to the world than that the United States should solve her own domestic problems, and, by solving them, provide the stimulus and the example to other countries. But observing from a distance, -- a nearer view of the prospect might modify my pessimism, -- I am unable to imagine a course of events which could restore health to American industry in the near future. I even fancy that, so far from the United States giving the example, she will herself have to wait for stimulus from outside. I, therefore, dare to hope -- however improbable it may seem in the light of recent experience -- that relief may come first of all to Great Britain and the group of overseas countries which look to her for financial leadership. It is a dim hope, I confess. But I discern less light elsewhere"

3 comments:

Anonymous said...

TO: Intellectuals, Authors, Economists, and etc

I think we need to blame ourselves, particularly our generations in not analysing our historical economic content.

We can learn a lot by understanding our economic history, rather than relying on great depression of USA, although we can learn a thing or two from them ? NO DOUBT, We envy their system, definetely we can have our economic system based on our industries, and potentials, whether tourism, mining and oil exploration, and etc

Why we dont have our HISTORY in books, films, and archives as you would put it, and STUDY FROM IT.

I trully believe, it would help us shaping our own future. We are already moving from JK Nyerere Era, therefore what is left is us learning the history in its content, I would love to see the books are written and are taught on secondary schools, that intself would breed a generations of economists who trully understand economic woes, mixing our own and the global economic system that we have today.

A word of whisper, A GOLD is in huge DEMAND globally especially at this time, why not regoniating our contracts with MULTI NATIONAL companies, hence the culprits are now on the DOCK.

Hey why not teaching our own, on mining exploration instead of relying on MULTI NATIONAL Companies, to me these are industries, if used properly we would definetely become wealthy nation.

You dont understand the wealth of a diamond, if you don't know its meaning.

Sorry I have been jumping from point to point here, but hey this is internet, I can only summarise the contents of what I am trying to say.

By Mchangiaji

Thuwein said...

I have been reading a lot on this notion that Barack has to get his inner FDR and what pundits have called it the new new deal. Yeah the economy is stumbling and the stock markets are like Vinnie Chase after the release of medillin (to those who follow entourage) during the thirties unemployment was around 30% compared to only 6% right now. We are not in depression yet folks-chill out and Phil Graham said correctly we are in a mental recession and America is a nation of whiners. Although Barack has done his best to reassure the markets that the best times are ahead of us with the team of egos (rivals)he has assembled-with Larry Summers, Paul Volcker and a brilliant depression expert Christina Romer to the west wing and Treasury run by a former republican turned independent Tim Geithner-a pragmatist that his choice has proven the notion that Barack's intention to govern from the center and to have a smart government regardless of its size or ideological point of view.

Is America going to spend its way out of this mild recession? and is that the right intervention? Austan Goolsbee (Barack's economy advisor) said on CNN "we are coming out with a bang" flexing out the power of about 700 billion dollars stimulus package that Barack wants the congress to approve it right after his inauguration with most of the money directed to unemployment benefits and infrastructures, but what the Krugmans and the Volkers forgot to mention is the fact that infrastructure is the worst economy stimulant and if the heftiest part of that stimulus package goes to infrastructure that would not help the main street at all for his entire first term of presidency. Although it will be helpful in a long run. Barack has to understand that we are not in 30's and our way out of this recession is completely different from the new deal.

And one more thing-should the Auto industry bailed out or not?

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