THE GREAT DEBATE

LIBERALS
CONSERVATIVES
20TH CENTURY AMERICAN
19TH CENTURY ENGLISH
SOCIAL RESPONSIBILITY INDIVIDUAL FREEDOM
SHORT-RUN TIME FRAME
LONG-RUN TIME FRAME
ENDOGENOUS PROBLEMS
EXOGENOUS PROBLEMS
POSITIVE FEEDBACK
NEGATIVE FEEDBACK
SELF-WORSENING
SELF-CORRECTIng
INSTABILITY & INEQUITY
STABILITY & EQUITY
POLITICAL REFORM
LAISSEZ-FAIRE
STRONG ON REALISM
STRONG ON LOGIC
WEAK ON LOGIC
WEAK ON REALISM
   
"IN THE LONG RUN WE ARE ALL DEAD. "
"IT AIN'T BROKE, SO DON'T FIX IT."

 

 

 

 

 

 

 

 

 

Positive Feedback = Unstable

 

Negative Feedback = Stable

 

 

 

 

 

 

 

 

 

 

 

adam smith's invisible hand

INDIVIDUAL GREED COMPETITIVE MARKET SOCIAL OPTIMUM

 

 

 

 

 

 

 

 

 

 

 

 

 

Overt Discrimination

 

 

 

 

 

 

 

 

 

Institutional Discrimination

 

 

 

 

 

 

 

 

 

 

Women's Percentage of MBA's

 

 

 

 

 

 

 

 

 

 

 

Education and Income

Income and Education

 

 

 

 

 

 

 

 

zam 2 stops/zam 3 starts here

 

 

 

 

 

 

 

 

 

Recession Proof economy?

AD = C + I + G + (X - M)
AD = Aggregate Demand
C = Household Consumption
I = Business investment
G = Government Spending
X - m = Net Exports

 

 

 

 

 

 

 

 

 

perpetual motion machine

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL INTERMEDIARies

PERSONAL SAVINGS INTEREST RATE BUSINESS INVESTMENT

bank or capital markets

 

 

 

 

 

 

 

 

 

 

Classical Macro Model

(Laissez-Faire Conservative)

 

 

 

 

 

 

 

 

 

 

 

CLASSICAL YO-YO SOLUTION

 

 

 

 

 

 

 

 

 

 

 

 

investment-savings equilibrium

 

 

 

 

 

 

 

 

 

 

 

investment-savings part deux

 

 

 

 

 

 

 

 

 

 

 

© 2007 Vanderbilt