With the stimulus bills and all the talk of a ‘double dip’ in the economy these days, there has been a lot of talk even among non-economists of the right or wrong ways to get us out of this recession and into a thriving economy again.
And, you may or may not have heard of the Keynesian school of economics (i.e. when private sector spending declines, the government must step in and pick up the slack, and spend. Thereby stimulating the economy). Okay that is a simplistic definition, but still on track. And we are in that experiment now in this country, while we watch Europe slide like a hill of mud in southern California after their same Keynesian ways.
I am strongly in the camp of the Austrian school of economics, as you can gather from reading any of my blog.
Here is a very well done video explaining the differences in the two schools. And, it’s fun to watch. I do not know anything about the group that put the video together, but a generous hat tip to them for this creation:
Oh, and what does either school of economics have to do with mortgages around Atlanta or the housing market? Why, everything.
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