I cannot conceive where any value can be found from this Post, except perhaps to establish a Rogues List. First, I will warn my kids that it discusses truly great Thinkers coming out of Chicago, where resides the great distrust of Keynesian theory. The place reeks of Nobel prizes! The major element which the Reader should use when reading consists of two facts; the Chicago school was the major counter-argument to Keynesian theory, and both arguments failed of experimental test, at least in the opinion of Most. Keynes and Friedman each acknowledged their theory’s Shortcomings in their own lifetime, which most following economists failed to study. It showed the dangers of leading any revolution; most people do not understand that Keynes was at heart a basic Conservative, while Friedman was at heart a Populist liberal. All economists cited in the article have spread a sincere advance of economics, yet are crippled by previous articulations. I often feel empowered by the fact that no one pays attention to myself.
This article may bring the Reader down to earth after the previous Trip through the Ozone. The real element which the Reader should focus on consists of the fact that after about eighteen months of Risk-Threat and Talk, the Country’s banking system still has no more Reserves or Program to reduce such Risks. Everyone talks, and no one acts! The trouble comes from the ideation that not-acting may be the proper course to adopt. Chicago school will say that things will work themselves out, if left alone. Keynesians would attest that Regulation is the Salvation. I doubt either, thinking there must be original thought brought to the issues involved.
My View of the Crisis would acclaim that the problems with the economy are systemic. The only way to better the operation of the economy is to alter the basic failures in the system. The first mandatory need would be to introduce a successful Tax system. An consistently applied Tax system would tax all Income levels at different but constant rates, with no opportunity or method to lessen the Tax impact. Many would disagree with me, but this would eliminate most of the desire to accept most unusual Risk levels. Higher Income levels will bring higher Tax payments without escape. Sudden Windfall gains become much less attractive, while the Cost of failed Risk amplify, as Taxes require a lengthier Period to recoup losses. This is the most important element I can find to improve the current economy, and will be the one element which will lead to long-term return to a growing economy. lgl