^ because we lost control of our system.

@Muten
P = Price level (inflation)
Y = Real income(quantity of stuff produced)
AD = Aggregate demand (Aggregate meaning total)
LRAS = Long Run Aggregate Supply (the total capacity of the economy)

It's now international, and without constant support from our """"allies"""" America and the rest of the west would collapse

our economy wants off of keyne's wild ride

Part of that support is the migrant crisis, fyi

<:poggers:583775485620781087>

Im liking this new board loads

THIS IS SHIT I ACTUALLY LEARNED

very sturdy feeling

One of the key differences between economics prior to Kenyes was that the economy would always rebound. For S O M E R E A S O N it didn't.

@Comando yer making me feel smart for going to college now <:hypersmugon:544638648721604608>

HMMMMMMMMMMMMMM

H<:sarGOY:462286263622303754> <:sarGOY:462286263622303754> <:sarGOY:462286263622303754> <:sarGOY:462286263622303754> <:sarGOY:462286263622303754>

@Comando certainly no one behind that

Hi niggers

(((some reason)))

pre-keynesian (bourgeois) economists generally thought there couldn't be a general glut in aggregate demand

a belief based on very silly assumptions

Keynes in contrast identified that something had changed. He conceptulized that there was a force which unlike before, was cutting into the effective demand (aggregate demand) of the economy.

So whilst the country had the factories, and the people willing to work them, the money that existed was not being applied to the economy.

^

Interesting, isn't it

i don't get it

Almost like we lost control of our entire system, in 1936

Keynes solution? Use Government spending to increase aggregate demand to get out of the rut, then scale back involvement, during the good times so you can do it again later.

but im taking economics in a month so ill find out then

When Keynesian Econ was in it's very beginning

yeah like borrowing from the future

or saving up rather

Keynesism worked really well... until it didn't, and broke western economies in the late 1960's and 70's in the form of inflation

The problem being that there is no such thing as a Keynesian politician

https://www.youtube.com/watch?v=3xZeafSsGYw sky kitty

it didn't break them

"Saving up" by alliance with childfuckers, and taking their criminals as asylum seekers

stagflation broke them

and keynesian schools at the time couldn't explain stagflation

it provided the impetus for the ascendance of neoliberalism

They bloody well could explain what had happened, but weren't willing to accept that Governments had over applied fiscal policy

@Comando my understanding is that it was only supposed to be temporary. To be replaced within a few decades, and it never was.

^Politicians will always have an incentive to spend and do something. This means that they will rarely cut back spending in practice. so Keynesianism is good when your in a rut, but will eventually break your economy if you continue it onwards.