Re: zero average profit

From: Allin Cottrell (cottrell@wfu.edu)
Date: Thu Jun 12 2003 - 12:39:06 EDT


On Thu, 12 Jun 2003, Rakesh Bhandari wrote:

> Well touting a 5% unemployment rate as proof of the success or
> effectiveness of Keynesianism (if that is what is implied here) only
> shows  how far standards had fallen from the 1960s!

I'm not making a general argument for the effectiveness of
Keynesianism.  I'm making the more specific point that a high level of
government deficit spending can be expected to lower unemployment.
Whether the reduced unemployment is sustainable is a broader
social-political issue.

The average unemployment rate in the U.S. from 1960:01 to 1969:12 was
4.78 percent, not so different from that at the end of the Reagan
deficit-spending episode.

Allin.


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