Dr. Steve Keen is one of 12 economist who predicted the Global Economic Crisis. He said this is due to the excessive levels of debt to GDP ratio.Prof Steve Keen is Associate Prof of Economics & Finance at The University of Western Sydney . Prof Steve Keen identifies himself as a post-Keynesian, He is highly critical of both modern neoclassical economics and (some of) Marxian economics as inconsistent, unscientific and empirically unsupported. Steve Keen looks at the rising national debts in Australia and the United States, paying particular attention to their historical relationship with recessions, growth and unemployment. He suggests that the levels of debt in both countries have reached a point which virtually guarantees a very difficult economic road ahead in the long term.
All we need is a brave government to abolish negative gearing and it will be a big downturn. The Government knows this but that they wont as it would mean political suicide for the government of the day.
Instead they will leave the market forces go into chaotic collapse on its own then come in "to ensure these unsustainable prices never ever effect our economy again" and abbolish negative gearing.
Problem is plenty of Baby Boomers are self funded for retirement through property, poor fellas.
This is scary. Do you really think it'll happen or is this just another prediction thats scary but never comes true
ReplyDeleteFor a dynamic model based on a classical perspective
ReplyDeletego to What if Paul Volcker didn't fight inflation?
The Austrians are correct in their theory but lack a dynamic model to give short run forecasts.