The Palm Beach Post from West Palm Beach, Florida on November 8, 1968 · Page 32
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The Palm Beach Post from West Palm Beach, Florida · Page 32

West Palm Beach, Florida
Issue Date:
Friday, November 8, 1968
Page 32
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32 Palm Beach Post, Friday, Nov. 8, 1968 Economic Plan Buried In England By ALBERT L. KRAI'S it J nn YnrkTimrtNcwsStTtHi YKW YORK - In England, the land of his birth, thoy have suddenly discovered that John Maynard Keynes is dead. It is not without shock, for Keynes, who died in 194ft, had lived on as the principal influence in modern economics, not only in England but on this side of the Atlantic. These and other finidings touched off a debate that has echoed more loudly every year in the United States. It Is only in the last six to nine months, however, that It has engaged much attention in Britain. It Is ironic that in England, the attack on the Keynesian gospel should come from abroad. the quantity of money didn't count, that what influenced economic activity and employment most was private investment and government spending. Keynes's view was fou-ni ed on his belief that the Croat Depression, which began in 1929, occurred despite an easy money policy. Friedman's researches refuted this contention. Actually, he found that the money supply in the United States had dropped one-third between 1929 and 19:J.'S, not because of unwilling borrowers, but because the Federal Reserve "failed to exercise the responsibilities assigned to ir in the E . . T. M A uAS S- --.AT Federal Reserve Act to provide liquidity to the banking system." Other research by Friedman showed that the ratio of income to investment spending, the so-called Keynesian multiplier, was less stable and predictable than the turnover, or velocity, of the money supply ai d thus less useful as a short-term forecasting tool. THIS HI I MELALEUCA REG. 10-GAL-CAN VITEX LEGUSTRUM EGG CAN 1000'S OF . 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The I.M.F., which is Britain's biggest creditor, sought to impart the findings of the so-called Chicago school ot economists, headed by Milion Friedman. These strike at the heart of Keynesianism. Keynes said in effect that Qii.mtih Kiclils Hi-smi-d DISCOUNl Kj C-: tom folinsons NURSERY PH. 683-1754 COMPLETE HOME FURNISHERS 2188 N. Military Trail W.P.B. Ph. 683-8696 FROM 1 Mi. South of Southern Blvd., McNAMARA'S MINI-MALL NOW OPEN o FLORIST WIRE SERVICE 0 FITCH'S HANDCRAFTS 620 SO. DIXIE UNIANA Phone 582-9360 1 iiihium i,jiu,i" ipujf .i m imi. i j i LAST WEEK OF -CERTIFICATE LOMST PRICES Of WE YEAR Sonotonc's smallest hearing aid is worn all in the car ideal for active men and women who need better hearing. The SONET8 weighs just one-tenth of an ounce with battery. It slips right into the car no outside cords, tubes or wires. Scc-for yourself rhoni, Will or MAIL THIS COUPON TODAY I For FREE Hiaring Teit In thej I privacy of your own home, j Nama ... 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It recalled that at the end of his great work, "The General Theory of Employment, Interest and Money," Kevnes observed: "Practical men. who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist." And then, not without a certain amount of cruelty, that august publication concluded "The piquant situation today is that Keynes himself is now a defunct economist.." The reason why, at long last, the British have been willing to write Keynes's obituary is that the Keynesian prescription has not worked. Despite devaluation, cuts in public expenditure and the "toughest budget in British Historv." consumer spending the chief source of Britain's balance ot payments difficulties has subsided hardly at all. The retail sales index in August stood at 1111 per cent of the ft level, down from 107 per cent in March but exactly where it stood at the time of devaluation a year ago. 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