Sunday, October 17, 2010
We are Japan
The U.S. is going to be the new Japan - a few decades of a lackluster economy. How do I know? Besides studying Austrian economics, which provides a good roadmap, there's a quote in this article from a Keynesian economist from Stanford. Nuff said. When a Keynesian says one thing, expect the opposite. And expect to live a more subdued, quiet lifestyle as the economy struggles.
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3 comments:
I dread future economics courses. I honestly do. It will be hard not to get angry and even harder to try and justify Keynesian economics.
What is amazing is that when you break it down, it is easy to see where Keynesian economics goes dreadfully wrong. I've been able to explain the downfalls of Keynes in only a few minutes to people who had absolutely no clue before hand (granted i have only broad strokes from the LVMI books that i have had time to read).
The truth behind it all is so easy to understand. If only people would look up and see what is happening around them and understand what has happened in the past.
I often think of something you used to say in class (almost daily): "The only thing we learn from history, is that we don't learn from history."
This whole thing would be funny if it wasn't so damn sad.
In what aspect will the US become like Japan? Surely it won't be in area of America's discipline in the work force. Does Japan provide entitlement for it's people like America encorages and young a
Americans subscribe too?
We are/will be Japan in the sense that all of the Fed's "prescriptions" for ending the "already ended" recession are not working. Google the "lost decade" and the story about Japan and the '90's comes up. But it's actually lasted two decades.
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