A keynesian (Someone who believe John Maynard Keynes view) would say thats when government (which should have been saving money in the boom time) starts spending money on large capital projects that gets people jobs and then money (and gets money moving again). Problems is it usually incurs large debts, often the jobs are temporary and don't help the ones laid off, even more so in these days of certification and training for years before you get a job.
A monetarist or a friedmanite would probably talk more in terms of loosening credit, reducing interest and making more cheap money so that people have access to capital for investment. and again helps free up the money from pools (because its not worth storing it with low interest rates you spend it).
Basically trying to get money flowing round the system (velocity of money) and various other complex economic theories. As any economist reading this will tell you I'm not one. The explanations are simplistic and slightly wrong in some ways by being so simplistic - I'm a Professional Engineer by background so I tend to look at money through that lens and try to abide by KISS principle. Any economists here can elaborate.
Problem is (I used to believe in Keynes - Hoover dam and Las vegas which grew up because of it, or Golden gate bridge - are examples) but it tends to be rubbish because governments don't possess the discipline and because it bucks the free market and is very socialist. Problem is moneterism is also not really working very well either and risking deflation.
I'm starting to try to look at Von Mises' ideas for an answer but still not really understanding.
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Anyone That Believes That Collapsing Oil Prices Are Good For The Economy Is Crazy
A keynesian (Someone who believe John Maynard Keynes view) would say thats when government (which should have been saving money in the boom time) starts spending money on large capital projects that gets people jobs and then money (and gets money moving again). Problems is it usually incurs large debts, often the jobs are temporary and don't help the ones laid off, even more so in these days of certification and training for years before you get a job.
A monetarist or a friedmanite would probably talk more in terms of loosening credit, reducing interest and making more cheap money so that people have access to capital for investment. and again helps free up the money from pools (because its not worth storing it with low interest rates you spend it).
Basically trying to get money flowing round the system (velocity of money) and various other complex economic theories. As any economist reading this will tell you I'm not one. The explanations are simplistic and slightly wrong in some ways by being so simplistic - I'm a Professional Engineer by background so I tend to look at money through that lens and try to abide by KISS principle. Any economists here can elaborate.
Problem is (I used to believe in Keynes - Hoover dam and Las vegas which grew up because of it, or Golden gate bridge - are examples) but it tends to be rubbish because governments don't possess the discipline and because it bucks the free market and is very socialist. Problem is moneterism is also not really working very well either and risking deflation.
I'm starting to try to look at Von Mises' ideas for an answer but still not really understanding.