I personally don't agree with everything anyone says all of the time. To my way of thinking, everyone makes their little contribution to human progress. No one is always correct 100% of the time!
If you go the military Keynesian route and spend large percenages of your GDP on the military, then that is the directions your markets will take, and that is the path to war or national bankruptcy. If you spend a large percentage of your GDP on the construction, maintenace and operation of prisons, then you will have a prison economy with markets geared to meet the needs of prison industry.
> Dear Thomas Lehman,
> I know you don't agree with my thought. I'd like to know what you think
> you should do to raise the living standards of poor people.
> Points 3 and 4 are not essay about market regulation. They are just the
> other functions of government.
> The essay about market regulation is the following:
> Chart 2: free flow of labour force
> This is the self-regulation effect of F, D and P, or
> so-called Market regulation effect. In this way, it is
> quite easy for the government to make regulation and give
> guidance of market. When there appears insufficient supply
> of grain and starvation, what the government should do is
> to guide labour force and funds to grain production so as
> to acquire more grain; when there appears surplus of grain,
> what the government should do is to guide labour force and
> funds to industrial production so as to acquire more
> industrial products. And my four-grade division of demand
> and consumption thus makes the function of government's
> market regulation and market guidance further clear: when
> there appears insufficient production of necessary consumer
> goods of the first grade, the government is to guide labour
> force and funds to the production of necessary consumer
> goods of the first grade; when there appears overproduction
> of necessary consumer goods of the first grade, the
> government is to guide labour force and funds to the
> production of ordinary consumer goods of the second grade;
> and when there appears overproduction of ordinary consumer
> goods of the second grade, the government is to guide
> labour force and funds to the production of extravagant
> consumer goods of the third grade.
> Please give me your comment on the above market regulation. Do you think
> if there is another ideas of market regulation?
> Ju-chang He
> Tom Lehman wrote:
> > Dear Ju-chang He,
> > Attaboy!(American idiom for good job). Always remember the old American saying,
> > " one, Oh!Shit!, wipes out one thousand attaboys!"
> > On your first essay about market regulation, points 3 and 4 are non-productive
> > spending and should be limited to necessity, maybe 1% of GDP. On point 5 what
> > little I know of China---you need expressways like you need another hole in the
> > head. Take a look at electric light rail systems for interurban transportation
> > and commuting to work. Cars are fun; Americans would probably use them a lot
> > less if we had not scrapped our electric light rail systems in this country.
> > That's an American story you should look into.
> > Sincerely,
> > Thomas Lehman
> Ju-chang He
> SHENZHEN, P.R. CHINA
> E-mail address: <chang at public.shenzhen.cngb.com>
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