Thursday, May 20, 2010

What Do You Do When Profits Go Down?

If you're a socialist like Marx, you call it excess production capacity when profits decline. Power to the working class!

If you're a more traditional Keynesian, you say we have a problem with demand, nothing that a little stimulus won't cure.

If you're a libertarian like Friedman, you say get the hell out of the economy and let the business fail if it's producing things people don't want!

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