Keynes Vs. Hayek

This is a discussion on Keynes Vs. Hayek within the Economic & Fundamental Analysis forums, part of the Methods category; Originally Posted by Shakone Agreed. Which in my opinion is why you need to reduce taxes and stimulate when times ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Aug 24, 2011, 10:09pm   #33
 
Atilla's Avatar
Joined Nov 2006
Re: Keynes Vs. Hayek

Quote:
Originally Posted by Shakone View Post
Agreed. Which in my opinion is why you need to reduce taxes and stimulate when times are bad, not increase. Also since you can't always reduce taxes, or they would converge to zero, you have to have a time when you increase taxes. When is the time to do this?

In my opinion the best time to do that is when times are good, booming in fact. It will it will have far less of a negative impact at that time, and the revenues will be increased more dramatically then. Which is why I disagreed with Atilla, that you cut taxes when the yearly books are balanced and debt outstanding.

Invest when things are low,
Beg to differ.

As mentioned before should Greece be cutting taxes to get their economy moving?

UK same scenario... We are in debt.

US same scenario in debt.

How much does it cost to service those trillions of billions of debt.

So you are in debt and you cut taxes -> increase debt.

This political crap about reducing Government foot print and spending and letting people decide how to spend monies is pie in the sky right now.

Totally ignores the debt.

Tax cuts will only compound our debt issue. Does no one see this BIG problem.

Bunch of parrots repeating

tax cuts
tax cuts
tax cuts...
Atilla is online now   Reply With Quote
Old Aug 24, 2011, 10:10pm   #34
Joined Aug 2011
Re: Keynes Vs. Hayek

In a car, the break pedal slows you down, the throttle pedal speeds you up. It doesn't matter if you are going uphill or downhill, the pedals do the same thing.

As it is with taxes and the private sector. More taxes slow you down, growth in the private sector speeds you up. If you are going downhill, release the break pedal, and let gravity take care of the rest.
FarQuinnell is offline   Reply With Quote
Old Aug 24, 2011, 10:10pm   #35
 
Shakone's Avatar
Joined Feb 2009
Re: Keynes Vs. Hayek

Quote:
Originally Posted by Atilla View Post
Giving up the will to live...

Look policy is simple...

1. Raise Taxes
2. Reduce Spending
3. Mild inflation > interest rates

Hey presto debt paid off in no time.

Anything else is pissing in the wind...
Ok, so your policy is to reduce taxes when the UK has no debt and is running a surplus. Useful...in a century or so. Maybe. Do you not realise how long the debt is going to be with us? So what's the point in arguing a case for something that isn't going to happen. It isn't going to be paid off for a long long time.

You say Keynesian approach doesn't work, because politicians spend out of recession and spend in boom times. This is not the Keynesian approach as I understand it. Under Keynesian approach you spend during recession, and recoup during boom. It's not Keynesian approach that has failed, because that hasn't even been tried. It's the failure of politicans and government to follow a proper plan. I mentioned why in my first post.

You ask if someone earning 50-100K would work more, bank holidays weekends etc. Well many people already do, but yes I would, and yes I have. I've worked a second job, despite my main job salary being at the lower end of the range you suggest. This attitude has kept me out of debt, contributing to society, and with moderate savings. I don't think the UK government can boast the same. I'll be putting my ethics of money, debt, work and savings ahead of the governments, thanks.
Shakone is offline   Reply With Quote
Old Aug 24, 2011, 10:11pm   #36
Global Moderators are volunteer members with senior administrative powers to moderate all forums.
 
counter_violent's Avatar
Joined Aug 2004
Re: Keynes Vs. Hayek

Quote:
Originally Posted by FarQuinnell View Post
Are you a simpleton?
Is too young to have lived through any real recession and therefore has no practical day to day experience of it. Also has been to college for knowledge so is well versed in text book nonsense.
__________________
Spreading the madness across this suite of forums.

Those are my principles and if you don't like them, well..... I have others.

Kin Dissers Everywhere
counter_violent is offline   Reply With Quote
Old Aug 24, 2011, 10:12pm   #37
 
Atilla's Avatar
Joined Nov 2006
Re: Keynes Vs. Hayek

Quote:
Originally Posted by FarQuinnell View Post
Are you a simpleton?
You are FarQuinell?
Atilla is online now   Reply With Quote
Old Aug 24, 2011, 10:12pm   #38
 
spreader_legger's Avatar
Joined Feb 2007
Re: Keynes Vs. Hayek

What taxes do you propose to raise?? Remember that some taxes will have a short term inflationary impact ..... & if times are good I presume that pressures on prices will already be high.

In the case of Ireland, messing around with things like corporation tax would just lead to uncertainty & reduced likelihood of future investment.

Remember that taxes will tend to have a distortionary effect on allocation of resources .... I also assume you don't intend to spend the proceeds on wacky wasteful social ventures Blair undertook & which we are paying for today.

PS I am convinced that Blair is what economists refer to as a negative externality

Quote:
Originally Posted by Shakone View Post
Agreed. Which in my opinion is why you need to reduce taxes and stimulate when times are bad, not increase. Also since you can't always reduce taxes, or they would converge to zero, you have to have a time when you increase taxes. When is the time to do this?

In my opinion the best time to do that is when times are good, booming in fact. It will it will have far less of a negative impact at that time, and the revenues will be increased more dramatically then. Which is why I disagreed with Atilla, that you cut taxes when the yearly books are balanced and debt outstanding.

Invest when things are low,
spreader_legger is offline   Reply With Quote
Old Aug 24, 2011, 10:13pm   #39
 
Shakone's Avatar
Joined Feb 2009
Re: Keynes Vs. Hayek

Quote:
Originally Posted by Atilla View Post
Beg to differ.

As mentioned before should Greece be cutting taxes to get their economy moving?

UK same scenario... We are in debt.

US same scenario in debt.

How much does it cost to service those trillions of billions of debt.

So you are in debt and you cut taxes -> increase debt.

This political crap about reducing Government foot print and spending and letting people decide how to spend monies is pie in the sky right now.

Totally ignores the debt.

Tax cuts will only compound our debt issue. Does no one see this BIG problem.

Bunch of parrots repeating

tax cuts
tax cuts
tax cuts...
It's fine to differ. We can all have opinions. But some facts. My taxes have gone up. Debt has risen too, hasn't it? So what is your point?
Shakone is offline   Reply With Quote
Old Aug 24, 2011, 10:16pm   #40
Joined Aug 2011
Re: Keynes Vs. Hayek

Quote:
Originally Posted by counter_violent View Post
Is too young to have lived through any real recession and therefore has no practical day to day experience of it. Also has been to college for knowledge so is well versed in text book nonsense.
hang on, me or him?

FarQuinnell is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Milton Keynes JJL3142 The Foyer 0 May 13, 2003 10:25pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)