damn liberals!
Out of context: Reply #28
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- rabattski0
well in my humble opinion the keynes model is the best model that currently excists but it has a catch22 to it. the government need money in order to spend money. normally within keynes they get the money during a high economy (decrease budget / increase taxes) and spend that during a low economy which improves production and economic growth by still having a high enough level of consuming (by lowering taxes). however if there isn't any money to spend than a low economy will sustain longer (but it'll always go up someday naturally) + politicians are people too, they are very afraid to spend money anti-cyclic because it might happen that they run out of it etc. a keynes model only works long term. it doesn't work within a year. and every new elected government influences the effect of the keynes model. another side effect is that the people shouldn't stop consuming during a low economy which will make it only worse. so the keynes model should be integrated in the entire society.