Government's role in the economy, what's the best policy?

[Anarcho-Socialist]

Poll question: Government's role in the economy, what's the best policy?

There are various ways a government can help the economy, what is the best policy for the government to hold? Some definitions to help you make up your mind:

* Keynesian (demand-side) The government spends money in the economy in the public sector to create "demand", with the intention of stimulating growth and reducing unemployment. Taxation is used as the primary means of controlling inflation. Deficits are incurred during times of economic difficulty, but surpluses are used to pay off national debt during economic boom years.

* Keynesian (supply-side) The government cuts taxes to stimulate economic growth, by "supplying" extra spending power to the consumer, with the intention of stimulating growth and reducing unemployment. Taxation is used as the primary means of controlling inflation. Deficits are incurred during times of economic difficulty, but surpluses are used to pay off national debt during economic boom years.

* Monetarist "Trickle-down" - the government significantly cuts taxes for the wealthiest whilst simultaneously cutting social spending. with the outcome of increasing economic growth. The main intention here is price-stability (low inflation) as a means for optimum growth. Heavy deficits are used to cut taxes, increasing growth is seen as the solution to decrease any deficits incurred. Paying off the national debt is not a priority.

* Libertarian - Taxation is all but eliminated, except to pay for a very small government, a police force and the military. Floating currency is abolished in favour of the Gold Standard (where each dollar is 'backed' by an equivalent amount of gold). Libertarians believe that most interference in the economy by the government hinders economic growth.

* Rubinomics - the government cuts taxes for the poorest and small businesses to lower unemployment and increase spending power in the economy. Tax breaks are used as incentives for companies to invest in R&D and the stock market. A high importance is places on a balanced budget, which is seen as providing optimum conditions in order to achieve economic growth and low unemployment. This is also an anti-inflationary messure. Any surpluses are used to pay off national debt, which also can be used to keep inflation low and increase future spending power in the economy.

* Rehn-Meidner model - Balanced budgets are used a means to control excessive inflation and provide optimum conditions for economic growth and low unemployment. There is a policy of "wage solidarity" which means people are paid the same rate for the same job despite what part of the country they live in, but there are allowances for work experience. This is a way to simulate labour mobility, to eliminate wage-disparity between genders, and eliminates population pressures that push up costs of housing and furthers inflation. Selective employment programs are used to shore up any labour or skill shortages in the economy.

* Socialist system - Industry is nationalized and business is collectivised. Workers will now own the means of production as a way to provide pride in one's own work as everything is now public-owned. Every decision in the economy is taken by the central government via a process of "central planning". The government is seen as being in the best place to make decisions to improve the quality of life for the population and to lower unemployment.

[Spinzonner]

1. Don't know but

Bush and his cronies clearly believe in "laissez unfaire" capitalism

[Anarcho-Socialist]

2. or lazy unfair?

:)

[Vladimir]

3. I might point out that so called 'central planning'

involves a large amount of devolved decision making in practice, certainly on matters of only local importance... and socialist governments have historically not only not suffered from unemployment but have indeed had serious problems with finding enough workers to do all the jobs planned...

[RC]

4. Rehn-Meidner model (Sweden's social democracy)

Seems to the the best to me.

[3lefts]

5. Amazed that socialism is getting votes

"The young need not be embarrassed by finding socialism attractive. Many who were old enough to know better also fell for it."

Thomas Sowell

[aneerkoinos]

6. Well

The older I get the more socialist I get. Nice to see socialists are not only getting votes but leading the poll to further your amazement... :)

For me the most decisive factor is that of the given alternatives, socialism is the only model that is not based on the premisse of continuous (quantitative) economic growth, and can stay viable and humane even when the enviromental restriction really hit (Peak Oil first and foremost), and humanity enters period of decades of negative growth. It is really choise between adopting inclusive socialism or dying massively in a "liberal" Mad Max society.

[Anarcho-Socialist]

8. Welcome to DU

:hi:

[Osamasux]

7. Another attractive goal of Rubin's was intentionally driving down

interest rates. This was not just a side effect of maintaining a low inflation environment. His debt policies were specifically intended to push rates down, further spurring capital investment by the private sector and lowering the debt service obligations of federal, state and local government.

[Anarcho-Socialist]

9. I didn't know that, thanks for the input n/t

[Anarcho-Socialist]

10. vanity kick

[idlisambar]

11. Don't forget the East Asian Model

* East Asian Model: Characterised by polices that encourage saving and investment at the expense of consumption. Business regulation encourages long-term investment on the part of firms and stable employment practices rather than immediate shareholder returns. Banks serve as the primary source of capital and they tend to channel capital into tradable goods sectors as a matter of national policy. The resulting strength in tradable goods is demonstrated through favorable balances of trade and foreign asset accumulation.

[Lone_Wolf_Moderate]

12. I guess the Rubinomics model best fits.

I liked the Clintom model, which I think is much the same thing.