Friday, December 13, 2013

My Keynesian Point of View

I still believe in the mainstream point of view. I believe people have animal spirit, therefore government regulation is essential to our economy. Keeping supply, demand and the money supply on track cannot be done just by the people. People splurge their money on unnecessary items everyday; they also buy on credit even when it isn't advisable. We need a higher authority to fix that inflation! Also, I agree with the theory that businesses don't lower wages, but fire workers. In my personal experience, my mom used to be a lab technician for a contact lense company. The owners were in a low profit period, so instead of lowering wages, they started laying people off. This is true for other company too. This also proves that the mainstream point as valid.

No comments:

Post a Comment