Re: �g�ٲz�פ��ϭ�� -- 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Date Posted: 12:22:21 02/01/03 Sat
Author: Sky
Subject: Re: �g�ٲz�פ��ϭ��
In reply to: �p�A�� 's message, "�g�ٲz�פ��ϭ��" on 22:30:13 01/29/03 Wed

I am not economist and I have never studied economy, but one thing I must say is:

There is no definite answer to a economic problem.

Adam Smith suggested the use of "invisible hand" to guide the economy. His books had become the "bible" of economic studies. However, things never seemed to work in his ways. In theory, captalism keeps changing and perfects itself as time changes. In reality, the gap between the rich and the poor seems to grow larger endlessly. Some economists have already stated some arguments that express doubts towards Adam Smith's theory.

As I can recall, John Keynes's solution is the only way that worked in the previous century. Increasing spending, tax cut, and whatever to stimulate the economy. This solution has already proven problem-creating. The debts and costs to stimulate the economy is too great and the result is not as expected.

The Supply-side economics stated that tax cut results in greater government income because more people will be willing to pay tax. If the tax is too high, people will try to escape from tax and eventually reduces the government's income. However, we don't know what level of tax is "too high" and what level is "too low". This theory, apparently, does not apply to HK's current state. Even if tax is cut, people will most likely store up the extra money for future use. The government also needs money to reduce the loss.

Well, after listing all the theories and the flaws. There is only one conclusion that I can make: there is no definite solution.

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Re: �g�ٲz�פ��ϭ�� -- DD, 02:13:56 03/09/03 Sun