Viewing a single comment thread. View all comments

ThetaGangThroweway OP t1_j1zxj1g wrote

Reply to comment by 54321Joe in Why Interest Rates Should Stay High (ish). by ThetaGangThroweway

The term is Keynesian Economics. And it's the same intentionally flawed logic behind daytrading.

1

54321Joe t1_j2004yz wrote

Raising the Fed rate target isn't Keynsian. Its the opposite.

1

ThetaGangThroweway OP t1_j20453j wrote

Not necessarily. Keynesian Economics is the government must intervene and micromanage often because people can be stupid. It is not exclusive to creating growth

1

54321Joe t1_j20bl2x wrote

Not growth per se but increasing demand. Holding a higher borrowing rate would reduce consumer demand and not stimulate the economy during recessions. Am I missing something?

1

ThetaGangThroweway OP t1_j216sex wrote

Yeah. Artificially high demand has the same effect of artificially high valuations: Bubbles. If you'll recall, we were all buying stuff we don't need in 2021 and it simply was not sustainable.

1