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Old 01-05-2015, 06:46 AM   #31
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John Keynes proposed a "multiplier/accelerator effect" when you have a dramatic change in income cause by price drops. See here for an explanation Multiplier & Accelerator Effects. Basically with $100.00 additional money available the effect will and can have a multiple fold increase throughout the economy.
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Old 01-05-2015, 08:30 AM   #32
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Re: multiplier effect...
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Old 01-05-2015, 08:46 AM   #33
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Originally Posted by cpaharley2008 View Post
John Keynes proposed a "multiplier/accelerator effect" when you have a dramatic change in income cause by price drops. See here for an explanation Multiplier & Accelerator Effects. Basically with $100.00 additional money available the effect will and can have a multiple fold increase throughout the economy.
Hi: cpaharley2008... John Kenneth Galbraith was a "Keynesian" economist serving 5 American Presidents. He also hailed from "The north shore of Lake Erie".
I just don't know what this has to do with the price of gas!!! Alf
escape artist N.S. of Lake Erie
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Old 01-05-2015, 08:49 AM   #34
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Just adding more gas to the price of gas, I guess.....
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Old 01-05-2015, 09:09 AM   #35
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Just adding more gas to the price of gas, I guess.....
Hi: cpaharley2008... My guess is that we are all victims of "Time", and this drop in fuel prices is just in time for our now annual trip south. I just have to figure out what I'm going to do with the extra wealth I'll have.
I got 2 raises thanks to the CPI also, but the health insurance gets more each year I age. Alf
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Old 01-05-2015, 12:04 PM   #36
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Oil holdings taking a beating again this morning.
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Old 01-05-2015, 12:05 PM   #37
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According to the noon news, the DJIA has dropped 350 pts. this morning If one can believe the news reports the culprit is falling oil prices and its, affects on the economy . I like the lower oil prices but in the long run they may do as much damage to the economy as $5 gasoline
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Old 01-05-2015, 12:25 PM   #38
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Hi: cpaharley2008... John Kenneth Galbraith was a "Keynesian" economist serving 5 American Presidents. He also hailed from "The north shore of Lake Erie".
I just don't know what this has to do with the price of gas!!! Alf
escape artist N.S. of Lake Erie
But what would Milton Friedman, the supply side Nobel Laureate economist, say?
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Old 01-05-2015, 12:59 PM   #39
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According to the noon news, the DJIA has dropped 350 pts. this morning If one can believe the news reports the culprit is falling oil prices and its, affects on the economy . I like the lower oil prices but in the long run they may do as much damage to the economy as $5 gasoline
I would have to agree with that. It was nice to see a little off the top but this has been extremely oversold. Almost all commodities are now way down from a year ago. Everything today has such volatile price swings that you can get burned real fast. Loren
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Old 01-05-2015, 01:11 PM   #40
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Y'all are bringing back bad memories of second/third year economics classes.

And some good ones too.
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