America's Ideological Economic Battle
You may not know it but there is an ideological battle waging in America surrounding our very economy. This is a battle between two economic schools of thought: Adam Smith's Laissez-Faire economic theories and John Maynard Keynes managed economy theories.
Adam Smith was a British economist who gained fame around the time of the American Revolution by writing his famous nine-hundred page treatise known as The Wealth of Nations. In his treatise, Smith advocates a free and open market without government interference, except as to regulation. Smith put forth the notion that the economy works best when left to its own devices and falters when governments intervene or interfere with market forces. Ronald Reagan subscribed to Smith's theories and from 1982 through 2000 the U.S. economy experienced eighteen years of unfettered growth and created significant wealth and opportunity for many.
John Maynard Keynes, was a British economist preceding and during The Great Depression. Keynes advocated a managed economy. In his managed economy, Keynes considered it necessary for governments to intervene or interfere with market forces in recessionary times. Government needed to "prime the pump" in order to jump start the economy. FDR aggressively subscribed to Keynes' theories and for the first ten years of his administration he embarked on the single greatest effort to manage the U.S.economy, not seen until the current Obama administration. Most economists and financial experts agree that FDR's managed growth policies failed. In fact, during those first ten years, preceding WW II, unemployment never dipped below 10.5%. Many economists contend that The Great Depression would have ended much sooner had government just gotten out of the way.
So here we have two economic schools of thought. One proven to work, Smith's, and one proven not to work, Keynes. History is repeating itself right before our very eyes with the current Obama administration. Why do they think they can repeat history and expect different results? Why don't we just duplicate what the Reagan administration did by reducing taxes and getting government out of the way of commerce? If history does repeat itself we are looking at a recession that could extend well into the forseeable future.
Adam Smith was a British economist who gained fame around the time of the American Revolution by writing his famous nine-hundred page treatise known as The Wealth of Nations. In his treatise, Smith advocates a free and open market without government interference, except as to regulation. Smith put forth the notion that the economy works best when left to its own devices and falters when governments intervene or interfere with market forces. Ronald Reagan subscribed to Smith's theories and from 1982 through 2000 the U.S. economy experienced eighteen years of unfettered growth and created significant wealth and opportunity for many.
John Maynard Keynes, was a British economist preceding and during The Great Depression. Keynes advocated a managed economy. In his managed economy, Keynes considered it necessary for governments to intervene or interfere with market forces in recessionary times. Government needed to "prime the pump" in order to jump start the economy. FDR aggressively subscribed to Keynes' theories and for the first ten years of his administration he embarked on the single greatest effort to manage the U.S.economy, not seen until the current Obama administration. Most economists and financial experts agree that FDR's managed growth policies failed. In fact, during those first ten years, preceding WW II, unemployment never dipped below 10.5%. Many economists contend that The Great Depression would have ended much sooner had government just gotten out of the way.
So here we have two economic schools of thought. One proven to work, Smith's, and one proven not to work, Keynes. History is repeating itself right before our very eyes with the current Obama administration. Why do they think they can repeat history and expect different results? Why don't we just duplicate what the Reagan administration did by reducing taxes and getting government out of the way of commerce? If history does repeat itself we are looking at a recession that could extend well into the forseeable future.
Posted by TOM CORLEY RICH HABITS at 6/23/2009 7:52 AM 
Categories: Business
Tags: CONTROLLING THOUGHTS MEMORY TRICKS EXERCISE HAPPY SAVE FOR COLLEGE PRODUCTIVITY IRA ROLLOVERS HOW DO I BECOME WEALTHY LOSE JOB BUDGETING BIG GOVERNMENT SELF IMPROVEMENT HOW TO BLOG MEMORY TECHNIQUES NET PAY LOANS INCREASE PROFITS GOLD DEBT CAREER INDEPENDENCE DATA MINING HOW DO I GET RICH LEARNING MAKE MORE MONEY OVERCOMING OBSTACLES TO-DO LIST LESS STRESS DREAMS POLITICIANS WATERFRONT PROPERTY DREAMS COME TRUE COLLEGE EDUCATION BILL GATES VOLUNTEER WORK TAX INCENTIVES FINANCIAL GOALS ESTATE PLANNING RICH SHORT SALE LOSE WEIGHT DEPRESSION CREATING GOOD HABITS ESTATE TAX ADEQUATE SAVINGS START-UP MORTGAGE SELF-HELP CREDIT COLLECTION AFFIRMATIONS NETWORKING HOW DO I SAVE MONEY SELLING TECHNIQUES SUCCESS THINKING COMPENSATION CPA HEALTH SAVINGS ACCOUNTS JOBS SAVINGS LOSE MONEY OPPORTUNITY LUCK FIND JOB AEROBIC ACTIVITY FINANCIAL SUCCESS BUSINESS PLANS SELP IMPROVEMENT GOLF HOW DO I LOSE WEIGHT FAILURE HABITS UNEMPLOYMENT BENEFITS SALES TECHNIQUES FINANCIAL FREEDOM HOW DO I GET OUT OF DEBT STRATEGIC PLANNING PATENTS CFP EDUCATION STOCK INVESTORS EDUCATION PLANNING RICHES FREEDOM LONG TERM GOALS DEPENDENT NET INCOME EARNINGS FAMILY GOALS WEALTH IN AMERICA INFLUENTIAL PEOPLE INVESTMENT STRATEGIES MONEY MANAGERS CHANGING HABITS PROCRASTINATION REVERSE MORTGAGES IRS AUDIT REGULAR EXERCISE EATING BAD LUCK CONGRESS PAYING YOUR BILLS HOME LIFE INSURANCE ECONOMY HOW TO LOVE YOUR JOB $ INSURANCE AGENTS WINNING THE LOTTERY LUCK IRS AGENT RETIREMENT PLANNING FOOD GAMBLING FINANCIAL INDEPENDENCE RETIREMENT GOALS HOME OWNERSHIP FAILED BUSINESS MISTAKES ECONOMIC COLLAPSE DISCIPLINE IDEAS PEACE OF MIND TAX CREDITS MORE INCOME SPEAKING NEW HOME REALIZING YOUR DREAMS POOR SECRETARIES INVESTMENT IDEAS WEALTH IDEAS FINANCIAL FAILURE WORRIES HOW TO MAKE MORE MONEY ADEQUATE LIFE INSURANCE PEOPLE WHO PROCRASTINATE AMERICAN DREAM FUTURE GOALS WORK HARD PROFITS WORKING SMART GOVERNMENT EMPLOYEES TAX DEDUCTIONS BECOMING SUCCESSFUL OVERCOMING FAILURE OPPORTUNITY WEALTH TEACHING STRUGGLING FINANCIALLY SAD GETTING RID OF BAD HABITS MEDICAL EXPENSES DEBT FORGIVENNESS FINDING WEALTH POWER OF POSITIVE THINKING FOCUS GAINS GETTING HEALTHY GOALS MANAGE MY WEIGHT THE SECRET NO MORE WORRIES TAX AUDIT HOW TO EXERCISE SAVE FOR RETIREMENT INCOME TAX BILLIONAIRE EMPLOYMENT TAXES SHORT TERM GOALS I NEED FINANCIAL HELP BANKS MILLIONAIRE DIVORCE DAILY EXERCISE FINANCIAL PLANNING BLOGS INCREASE WEALTH HOW TO WIN INCOME ECONOMIC MELTDOWN BAD ECONOMY SUCCESSFUL PEOPLE IS THERE A GOD GOOD LUCK CREATIVITY INVESTEMENT GOALS HOW TO FIND A JOB FINANCIAL MISTAKES RELATIONSHIP BUILDING FINANCIAL SAFETY NET BANKRUPTCY CAR DEALERS DEBT RELIEF LAW OF ATTRACTION GROSS INCOME HOW DO I SAVE FOR RETIREMENT EASY MONEY LOTTERY REDUCE TAXES RICH HABITS REAL ESTATE RENTALS INSURANCE AGENT UNHEALTHY LIVING GENEROUS WRITING TAXES REDUCE TAXATION ARTICLES GOOD TIMING HOW TO CREATE WEALTH FIXING BAD HABITS TEACHERS CONTROLLING EMOTIONS DEFICIT SPENDING GAIN WEIGHT UNEMPLOYED VACATIONS GOOD HABITS ENDING WORRIES GOOD CAREERS ACCOUNTANT PERSONAL FINANCE TAX STRESS FINANCIAL MELTDOWN WEALTH CREATION FRAUD DIETS GRADUATE DEGREE SAVING MORE MONEY BAD DEBT CAREERS HOW DO WEALTHY PEOPLE GET RICH GETTING RICH QUICK HOW DO I EARN MORE MONEY FIND MONEY LUCKY PEOPLE HARD WORK DAILY HABITS NEGLEGENCE WEALTH BLOGS QUICK INCOME RANDOM LUCK FEDERAL RESERVE RAGS TO RICHES SUCCESS HABITS WARREN BUFFET STARTING A BUSINESS BANKERS RECESSION CREATING LUCK LESS DEBT BAD HABITS POOR PEOPLE MARITAL PROBLEMS HEALTHY LIVING HOW TO MAKE MONEY HOW DO I SAVE MORE MONEY HOW TO SELL INSURANCE AGENCIES DEFICIT MAKE MONEY MODERATION RICH THINKING INVESTMENT GOALS REMEMBERING NAME MORTGAGES HOW TO NETWORK INVESTMENT PROPERTIES AUTO DEALERS WHERE TO RETIRE FORECLOSURE GENEROSITY POSITIVE THINKING ROTH IRA FINANCE CREDITORS TAX BENEFITS WORKAHOLIC FOLLOW YOUR DREAMS DIETING HOW TO BECOME WEALTHY PAYING BILLS GOD CRUISE INSOLVENT SOLVENT STRATEGIES FOR WEALTH HOW DO I CREATE LUCK
Categories: Business
Tags: CONTROLLING THOUGHTS MEMORY TRICKS EXERCISE HAPPY SAVE FOR COLLEGE PRODUCTIVITY IRA ROLLOVERS HOW DO I BECOME WEALTHY LOSE JOB BUDGETING BIG GOVERNMENT SELF IMPROVEMENT HOW TO BLOG MEMORY TECHNIQUES NET PAY LOANS INCREASE PROFITS GOLD DEBT CAREER INDEPENDENCE DATA MINING HOW DO I GET RICH LEARNING MAKE MORE MONEY OVERCOMING OBSTACLES TO-DO LIST LESS STRESS DREAMS POLITICIANS WATERFRONT PROPERTY DREAMS COME TRUE COLLEGE EDUCATION BILL GATES VOLUNTEER WORK TAX INCENTIVES FINANCIAL GOALS ESTATE PLANNING RICH SHORT SALE LOSE WEIGHT DEPRESSION CREATING GOOD HABITS ESTATE TAX ADEQUATE SAVINGS START-UP MORTGAGE SELF-HELP CREDIT COLLECTION AFFIRMATIONS NETWORKING HOW DO I SAVE MONEY SELLING TECHNIQUES SUCCESS THINKING COMPENSATION CPA HEALTH SAVINGS ACCOUNTS JOBS SAVINGS LOSE MONEY OPPORTUNITY LUCK FIND JOB AEROBIC ACTIVITY FINANCIAL SUCCESS BUSINESS PLANS SELP IMPROVEMENT GOLF HOW DO I LOSE WEIGHT FAILURE HABITS UNEMPLOYMENT BENEFITS SALES TECHNIQUES FINANCIAL FREEDOM HOW DO I GET OUT OF DEBT STRATEGIC PLANNING PATENTS CFP EDUCATION STOCK INVESTORS EDUCATION PLANNING RICHES FREEDOM LONG TERM GOALS DEPENDENT NET INCOME EARNINGS FAMILY GOALS WEALTH IN AMERICA INFLUENTIAL PEOPLE INVESTMENT STRATEGIES MONEY MANAGERS CHANGING HABITS PROCRASTINATION REVERSE MORTGAGES IRS AUDIT REGULAR EXERCISE EATING BAD LUCK CONGRESS PAYING YOUR BILLS HOME LIFE INSURANCE ECONOMY HOW TO LOVE YOUR JOB $ INSURANCE AGENTS WINNING THE LOTTERY LUCK IRS AGENT RETIREMENT PLANNING FOOD GAMBLING FINANCIAL INDEPENDENCE RETIREMENT GOALS HOME OWNERSHIP FAILED BUSINESS MISTAKES ECONOMIC COLLAPSE DISCIPLINE IDEAS PEACE OF MIND TAX CREDITS MORE INCOME SPEAKING NEW HOME REALIZING YOUR DREAMS POOR SECRETARIES INVESTMENT IDEAS WEALTH IDEAS FINANCIAL FAILURE WORRIES HOW TO MAKE MORE MONEY ADEQUATE LIFE INSURANCE PEOPLE WHO PROCRASTINATE AMERICAN DREAM FUTURE GOALS WORK HARD PROFITS WORKING SMART GOVERNMENT EMPLOYEES TAX DEDUCTIONS BECOMING SUCCESSFUL OVERCOMING FAILURE OPPORTUNITY WEALTH TEACHING STRUGGLING FINANCIALLY SAD GETTING RID OF BAD HABITS MEDICAL EXPENSES DEBT FORGIVENNESS FINDING WEALTH POWER OF POSITIVE THINKING FOCUS GAINS GETTING HEALTHY GOALS MANAGE MY WEIGHT THE SECRET NO MORE WORRIES TAX AUDIT HOW TO EXERCISE SAVE FOR RETIREMENT INCOME TAX BILLIONAIRE EMPLOYMENT TAXES SHORT TERM GOALS I NEED FINANCIAL HELP BANKS MILLIONAIRE DIVORCE DAILY EXERCISE FINANCIAL PLANNING BLOGS INCREASE WEALTH HOW TO WIN INCOME ECONOMIC MELTDOWN BAD ECONOMY SUCCESSFUL PEOPLE IS THERE A GOD GOOD LUCK CREATIVITY INVESTEMENT GOALS HOW TO FIND A JOB FINANCIAL MISTAKES RELATIONSHIP BUILDING FINANCIAL SAFETY NET BANKRUPTCY CAR DEALERS DEBT RELIEF LAW OF ATTRACTION GROSS INCOME HOW DO I SAVE FOR RETIREMENT EASY MONEY LOTTERY REDUCE TAXES RICH HABITS REAL ESTATE RENTALS INSURANCE AGENT UNHEALTHY LIVING GENEROUS WRITING TAXES REDUCE TAXATION ARTICLES GOOD TIMING HOW TO CREATE WEALTH FIXING BAD HABITS TEACHERS CONTROLLING EMOTIONS DEFICIT SPENDING GAIN WEIGHT UNEMPLOYED VACATIONS GOOD HABITS ENDING WORRIES GOOD CAREERS ACCOUNTANT PERSONAL FINANCE TAX STRESS FINANCIAL MELTDOWN WEALTH CREATION FRAUD DIETS GRADUATE DEGREE SAVING MORE MONEY BAD DEBT CAREERS HOW DO WEALTHY PEOPLE GET RICH GETTING RICH QUICK HOW DO I EARN MORE MONEY FIND MONEY LUCKY PEOPLE HARD WORK DAILY HABITS NEGLEGENCE WEALTH BLOGS QUICK INCOME RANDOM LUCK FEDERAL RESERVE RAGS TO RICHES SUCCESS HABITS WARREN BUFFET STARTING A BUSINESS BANKERS RECESSION CREATING LUCK LESS DEBT BAD HABITS POOR PEOPLE MARITAL PROBLEMS HEALTHY LIVING HOW TO MAKE MONEY HOW DO I SAVE MORE MONEY HOW TO SELL INSURANCE AGENCIES DEFICIT MAKE MONEY MODERATION RICH THINKING INVESTMENT GOALS REMEMBERING NAME MORTGAGES HOW TO NETWORK INVESTMENT PROPERTIES AUTO DEALERS WHERE TO RETIRE FORECLOSURE GENEROSITY POSITIVE THINKING ROTH IRA FINANCE CREDITORS TAX BENEFITS WORKAHOLIC FOLLOW YOUR DREAMS DIETING HOW TO BECOME WEALTHY PAYING BILLS GOD CRUISE INSOLVENT SOLVENT STRATEGIES FOR WEALTH HOW DO I CREATE LUCK
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