Re: More money or better distribution?

["John B. O'Donnell" <jackodonnell@xxxxxxxx>]

John M. Legge wrote:
>
> Keynes joke about burying money was a satire on gold, as reading it context
> makes clear.  The orthodox of his day would not "print" (i.e. allow the
> money supply to grow by deficit financing) money to overcome a crisis, but
> as Keynes pointed out, if someone had discovered a large new gold mine they
> would not have prevented the discoverer digging up the gold and providing
> liquidity to the economy.

It still makes a better solution [i.e. -- It makes reasonably certain
created money will cause a change in distribution that will increase the
propensity to consume.] than an increase in money supply that ignores
the possibility the increase could actually be counter - productive.
[i.e. -- The increase could cause an increase in the propensity to
save.] However, I also now notice that it would not matter if it also a
results in an inflation, it's just that the inflation would be all but
inevitable if the resulting distribution change were toward saving while
the tendency to inflate could be overcome if the distribution change
were toward consumption. I had not considered that detail and for that
change in my perspective, I thank you.

<<SNIP>>

> BTW, you seem to think that working capital is not needed by firms.  This
> certainly puts you in a school of business all by yourself,

A curious insight into of my thoughts. I recall making no such
observation. Where did you find this floating around my head?

If I were to make such a statement, for which I see no particular need,
it would be addressed to semantic detail and not one of any substantive
consequence in the real world. It would also fit conditions presented by
Henry George as to the unlikely consequence of all capital being
suddenly destroyed, a circumstance I am not anticipating.

> Krugman's papers are nearly all on his personal home page
> http://web.mit.edu/krugman/www/

Thank you, but there's been a change [Quoted from his page.]:

"Slate has just gone to a paid subscription basis, so that starting the
week of March 9 my most recent column can only be accessed if you
subscribe."

However, there is a substantial listing of his articles that will keep
me busy for awhile.

			-- jbod

		Tax Privilege, Not People
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