Maybe Keynes’s letter, with my interjections, proved too much for you: Michael Cembalest, Chief Investment Officer of J.P. Morgan, sends out this chart, which shows much the same information in graphic form.
It’s all there in the graph’s title, really. Thanks to Michael for permission to post.
13 comments
November 20, 2008 at 11:26 pm
ari
So, could you know any more heavy hitters? Regardless, whatever. My mom thinks I’m really smart. Or at least I think she does. But she probably won’t go on the record. And she certainly can’t be counted on to make a graph.
November 20, 2008 at 11:28 pm
Sifu Tweety
The man makes a good graph; no wonder he makes the big bucks.
November 21, 2008 at 3:28 am
Fiscal Policy works! — WEISSGARNIX
[...] Als kleine Aufmunterung für unsere Damen und Herren Politiker, die sich in endlosen Sitzungen über “Konjunkturpakete ja/nein, und wenn doch wieviel?” ihre (selbstredend nicht colorierten) Haare zerraufen, hier eine Ansichtskarte aus den USA der 30er-Jahre, verschickt von JP Morgen und ausgegraben im wirklich herausragenden amerikanischen Blog “The Edge of the American West“. [...]
November 21, 2008 at 3:48 am
weissgarnix
Hi guys,
don’t get confused about occasional German ping-backs, I run a German-speaking blog in a Minskyian/Keynesian tradition and only stumbled over your excellent site this morning.
I really love it.
Take care
wgn
November 21, 2008 at 8:19 am
bitchphd
So I’m a little confused here. Are you implying that the New Deal was a *good* thing?
November 21, 2008 at 8:51 am
eric
don’t get confused about occasional German ping-backs
We’re delighted with them! We get Brazil, Germany … someplace Scandinavian; I can’t remember.
November 21, 2008 at 10:25 am
TF Smith
So Morgan’s man came to speak with ER?
November 21, 2008 at 5:40 pm
Top Posts « WordPress.com
[...] A picture worth a thousand of Keynes’s (and my) words. Maybe Keynes’s letter, with my interjections, proved too much for you: Michael Cembalest, Chief Investment [...] [...]
November 21, 2008 at 6:51 pm
rob helpy-chalk
I like the little arrows along side the bars and lines. Just in case you didn’t really notice that unemployment went down after 1941, there is a little arrow along side the shorter bars, and a matching blue arrow with the line showing the budget falling farther into deficit.
November 22, 2008 at 11:10 am
Ken Houghton
rob helpy-chalk appears to be referring the move from around 7% to below the NAIRU as the government spends a lot of money sending a few million people to work overseas, along with some investment in short-term goods manufacturing.
Hint to BarryO: a new Peace Corps could probably duplicate a lot of that except for the manufacturing portion, which the USA doesn’t do much of anyway these days. Oh, wait, you’re way ahead of the curve, if still thinking small.
November 23, 2008 at 12:43 pm
With Tyler against the strawmen and conservatives. « The Edge of the American West
[...] the way to restore economic health”—well, good thing nobody sane thinks that. The point of Michael Cembalest’s graph is not “war good” but “fiscal stimulus good”—you can have fiscal stimulus [...]
November 30, 2008 at 10:22 am
There she goes again. « The Edge of the American West
[...] Michael Cembalest says in his summary by email, For the anti-FDR crowd that believes that WPA/CCC workers were not [...]
December 30, 2008 at 8:38 pm
Mr. Econotatian
I believe government can hire people. Clearly during WWII the US unemployment rate was low. And the USSR had a zero percent unemployment rate.
What I’m not sure about is whether this hiring of people by the government provides more benefits than it costs in the long-term.