Re: [Phys-l] frizzi

["LaMontagne, Bob" <RLAMONT@providence.edu>]

Yes - but where we are is big debt and a very bad recession (I won't use hyperbole and say the word depression) - the combination you passed over.

:-)

Bob at PC

________________________________________
From: phys-l-bounces@carnot.physics.buffalo.edu [phys-l-bounces@carnot.physics.buffalo.edu] on behalf of Bernard Cleyet [bernardcleyet@redshift.com]
Sent: Saturday, August 20, 2011 12:32 PM
To: Forum for Physics Educators
Subject: Re: [Phys-l] frizzi

On 2011, Aug 20, , at 08:13, LaMontagne, Bob wrote:

> To all the Keynesians out there I would say
>
> ** And yet the debt rises **
>
> Bob at PC


Of course -- all Keynesians know this.  My reply is better big debt and a roaring economy than a low debt and a depression.

The simple minded method is low tax and stimulus in a depression and high tax to retire debt once the economy recovers.  What the EU is doing to Greece, et alia is backwards, and only prolongs the depression.  It does, however, increase trust among bankers so they will keep lending.  Better, as has been suggested, Germany and France guarantee loans to Greece, et alia, so they can spend themselves into prosperity.

bc
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