Re: Innovation and Boom Bust cycles.

[TPMacD@xxxxxxx by emout04.mail.aol.com (8.7.6/8.7.3/AOL-2.0.0) Sun, 5 Oct 1997 10:55:29 -0400 (EDT)]

In response to the following from Harry Veeder:

 <<Are you saying that the "private" sector should stay
out of theoretical and "pure" research as much as possible to prevent
boom-bust cycles?

If so this could lead to another important argument for some sort of public
funding of science and philosophy. >>

Yes.

And this is where I stake my claim to being Post-Keynesian.  I accept Keynes'
premise that governmental intervention is needed to stimulate the investment
of surplus wealth as a counterweight to the natural ebb and flow of the
profit sector.

But I differ from Keynes in how that intervention should take place.  Instead
of investing tax dollars to stimulate the making of more of the same old
stuff, I think tax dollars should be invested in the search for new and
better stuff.

Tim MacDonald