Keynesian economists often argue that private sector decisions sometimes lead to inefficient macroeconomic outcomes which require active policy responses by the public sector, in particular, monetary policy actions by the central bank and fiscal policy actions by the government, in order to stabilize output over the business cycle. Keynesian economics advocates a mixed economy – predominantly private sector, but with a role for government intervention during recessions. It is evident that private investments can not be trusted to safe guard the interests of the country as a whole. Private investments always go after profit. If labor is cheap in China or India private investors open factories there and destroy the manufacturing base of their own country. If an essential commodity is cheaper in China wholesalers will import those commodities from abroad and destroy the basic agriculture in the country. This is what is being seen in all developed countries. Can any one blame their Governments for improving the conditions of investments in their own country by decreasing interest rates,allowing more depreciation, giving more reductions for expenditure, allowing stock markets to boom allowing the rich to get richer.I think general public should be more patriotic to understand this.
Posted on: Sun, 26 Oct 2014 13:33:10 +0000
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