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From: mvs@meccts.UUCP (Michael V. Stein)
Newsgroups: net.politics
Subject: Re: Supply-side Economics: the  Savings Rate
Message-ID: <265@meccts.UUCP>
Date: Sat, 9-Nov-85 13:17:08 EST
Article-I.D.: meccts.265
Posted: Sat Nov  9 13:17:08 1985
Date-Received: Sun, 17-Nov-85 22:01:51 EST
References: <1475@teddy.UUCP> <7800591@inmet.UUCP> <756@whuxl.UUCP>
Reply-To: mvs@meccts.UUCP (Michael V. Stein)
Organization: MECC Technical Services, St.Paul, MN
Lines: 22

In article <756@whuxl.UUCP> orb@whuxl.UUCP (SEVENER) writes:

>To the extent it has worked at all it would seem to be more
>explicable in terms of Classical Keynesian theory of the effects of
>deficits rather than any increase in savings rate or consequent
>investment and improved supply.

Well considering the level of emotion in the rest of this article I am
not surprised to see the term "Classical Keynesian" used...  While
there are Classical schools and Keynesian schools of thought, usually
I have seen the two put together only when people are trying to make a
joke.  

Aside from that oxymoron, one has to stretch Keynesian theories
quite a bit to explain the events from 1980 to now.  A better
explanation might be found in Rational Expectations theory.
-- 

Michael V. Stein
Minnesota Educational Computing Corporation - Technical Services

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