[lbo-talk] Re: NYT: "Too Much Capital"

tully tully at bellsouth.net
Sat Mar 26 11:46:11 PST 2005


On Saturday 26 March 2005 02:04 pm, Jim Farmelant wrote:
>On Sat, 26 Mar 2005 13:53:19 -0500 tully <tully at bellsouth.net>
writes:
>>What might a
>> "demand side" version of economics look like?
>
>Like Keynesianism?

I've never studied economics so I had to look this up, but I had immediate problems with the concept I read about attributed to Keynes. For one Keynes seems to be saying that spending is what is needed to improve demand, but then he says such spending is in terms of investment. To me that's supply side again. How can pushing more money into corporations do anything to increase demand? All it does is give corporations excess cash that might find its way back to the investor in dividends, but is more likely to simply fuel more takeover bids and result in larger corporations and monopolies, from what I've seen. In any case, I don't see how this direction does anything to supply the consumer with more money to allow more spending, which is what I see as necessary for "demand side" economics.

--tully



More information about the lbo-talk mailing list