Hurricane Sandy is an Economic Boon
Lord John Maynard Keynes was a revolutionary economic genius. The ideas that he laid down in his opus, General Theory, are now the basis of government economic policy across the world.
At a very basic level, the crux of his ideas is that spending drives capital investment which drives economic growth. To “juice” spending, the government enacts stimulus and the Federal Reserve keeps money cheap with QE1, 2, 3…infinity. These policies have done wonders in keeping our economy solidly mediocre following the Bush-caused great recession of 2008.
Here is Keynes:
Nobel Prize-winning Princeton economics professor and New York Times columnist Paul Krugman is the modern day Keynes disciple. Here is what he says:
…something that forces firms to replace capital, even if that something seemingly makes them poorer, can stimulate spending and raise employment. Indeed, in the absence of effective policy, that’s how recovery eventually happens: as Keynes put it, a slump goes on until “the shortage of capital through use, decay and obsolescence” gets firms spending again to replace their plant and equipment.
So what if instead of burying bottles, you drown the entire East coast in water and then have to drain it and rebuild it?
Well it is no different, so get ready for a shot of prosperity America.