Trephining wrote:Titanic wrote:
Lol, wtf are you talking about?
Look at the Great Depression, Japan in the 90's (and beyond), the great depression in the 1870's and so on. Where the hell did all the "business cycle 101" bs come from?
Government intervention actually reduces the length of recessions as proven many times throughout the global economy, and I would love to see you try to counter this.
Btw Scotty I'm still waiting for your response in the Milton Friedman thread. Like usual you started up really hyper and up for it, 2 posts later you died off after I owned you.
Based on what you type here I am skeptical of any kind of "owning" actually being carried out by you.
You realize that the two lost decades in Japan have come in spite of immense government intervention in the form of low interest rates and massive stimulus spending, correct?
Government intervention does not reduce the length of recessions. It allows for inflationary actions to give the illusion of the recession ending, simply kicking the can down the road. Look at the LTCM bailout in 1999, moving to the tech bubble of 2001, moving to the housing bubble, etc.
I'd love to hear you explain away all the side effects of government intervention that accompany the officially stated intended direct effects.
A bizarre argument. Let me translate this into another context for those who don't truly understand why I believe Trephining is wrong.
That's right folks, we're going medical.
We are faced with a deeply sick patient. We have, on the basic level, two very simple options. Treat or not treat. Within Treatment we have a range of options. Take a pill a day to 15 hours of surgery. Within non-treatment we have no options- the patient will get better or die.
Trephining argues that doctors treating patients do two things:
1) Make the patient worse
2) Do nothing at all to affect the patient's condition
I can't be sure which he really believes, but let's be fair and say that he thinks treating patients is a bad thing. He has faith in the ability of the body to heal itself.
Now, that's a philosophy we can all get behind. The body can deal with scrapes, cuts, sprains and bruises without treatment in many cases. We're not dealing with a bruise though. We're dealing with cancer. Something that most would accept as being pervasive, and perhaps even incurable. Can we fix every part of the process that led us into this recession? Doubtful- it's everywhere. When dealing with cancer, non-treatment is fatalistic. Doctor intervention will be upsetting for some, but it is better than death.
Trephining suggests that because some doctors have mistreated their patients doctors should not be trusted to deal with patients. This is a grave series of errors (pun intended).
First he suggests that intervention itself caused the harm, rather than the way that the doctor intervened.
Secondly, he assumes that every patient is the same, and that the same method of intervention would affect the patient in the same way.
Thirdly, he suggests that the patient would have been better off without treatment, but offers no evidence for patients in a similar condition doing better without treatment.
Fourthly, he suggests that a cure is ineffective if it just "kicks the can further down the road". Preserving life, even the life of an economy, is still a worthy aim. He argues that death will come anyway, but that is no argument against prolonging life.
Finally then, Trephining seems to suggest that the length of the illness itself is what should be addressed. Is a long illness that is followed by no illnesses better than a mild illness followed by periodic mild illness? In other words- interference might well prolong an illness but prevent illness in the future. Reform may well retard economic growth, but it might be necessary for the improvement of general health. Rebreaking a broken bone, for example, might make recovery longer, but will result in a stronger leg.