Privatizing Keynes

Dr Pirie fails to mention traditional Austrian cycle theory in his piece, even though much of his 'privatising Keynesianism' seems to be based on a central bank providing incentives for unsustainable consumer spending, sowing the seeds for an inevitable crash.

http://thefilter.blogs.com/thefilter/2004/08/privatising_key.html

I think the underlying Austrian relevance must be addressed.

Keynes and later advocates all suggested unlimited growth (growth at sustained percentage increments through time) was the prime and sole criterea for economic performance. Acquisition of Debt is also seen as unlimited growth, though most are more hesitant about this element.

The truth is economic performance needs consolidation to eliminate unprofitable production operations. Debt acquisition can have unlimited growth, only if Wages enjoy unlimited growth. Wages cannot have unlimited growth without impoverishing Those who cannot meet the training and Production capacity. Presumption that a non-Recessionary economy can be maintained is foolish, and will lead to all the complications experienced by the Keynesians. lgl

Isn't this just the broken window falacy dressed in different clothing?

DSpears,

I do not think so. Truth states a probable savings of ten percent of resources per year comes from shutting down unprofitable production lines. Some Economists would claim Consumer Will has spoken in this, but I believe production operations will continue as long as production costs can be paid, due to the personal diress of Producers in closing operations. Recessions force Producers to prove the viability of their operations. It does this by insisting Production Costs must be paid, often by Production levels only one-third of quantity originally planned. lgl

Unemployment could be eliminated by outlawing farm equipment.