Re: Gen. Theo. Sem. response to Basil Moore

["Harry Veeder" <veed0001@xxxxxxxxxxxxxxxx>]

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>From: Basil Moore <bmoore@xxxxxxxxxxxxxxxxx>
>To: POST-KEYNESIAN THOUGHT <pkt@xxxxxxxxxxxxxxxx>
>Subject: Re: Gen. Theo. Sem. response to Basil Moore
>Date: Thu, Feb 24, 2000, 7:04 am
>

>Warren
>
>I agree wholeheartedly that we must find an explanation for Japan. Why is
>it that low rates there have not induced the private sector to deficit
>spend, so that the government must do it?

Because the Japanese as a nation (ie. as a collective rather than
individually) are "exhausted". They have gone beyond the stage of
overemployment as many western nations are now experiencing.

To borrow money is to have expectations about earning more money. If you
are just overworked those expectations can be maintained with some effort.
However, when you become exhausted those expectations simply
drain away...

Harry Veeder