Davidson's Post Keynesian account suffers from a related problem.  Against his enemies, the proponents of efficient markets, Davidson is anxious to assure us that the future is uncertain.  But he nevertheless has a mechanical view of what will happen if government spending in a recession takes place as massively as he wishes.  Then, he assures us, the economic doldrums will end and all will be well.  How does he know that business and consumer confidence will respond so readily to the injection of government money?  Evidently, the future is uncertain, but somehow this state of affairs alters when government enters the scene.Why should we believe this?  Why assume that business confidence is so rigidly determined?  Is it not rather the result of many causes that, if indeed the future is uncertain, cannot be readily specified?

What It Means

This is a placeholder explanation generated by the low-overhead model. It interprets "Davidson's Post Keynesian account suffers from a related problem.  Against his enemies, the proponents of efficient markets, Davidson is anxious to assure us that the future is uncertain.  But he nevertheless has a mechanical view of what will happen if government spending in a recession takes place as massively as he wishes.  Then, he assures us, the economic doldrums will end and all will be well.  How does he know that business and consumer confidence will respond so readily to the injection of government money?  Evidently, the future is uncertain, but somehow this state of affairs alters when government enters the scene.Why should we believe this?  Why assume that business confidence is so rigidly determined?  Is it not rather the result of many causes that, if indeed the future is uncertain, cannot be readily specified?" in the context of "David Gordon, "The Keynes Solution?," Mises Daily (Auburn, AL: Ludwig von Mises Institute, 16 October 2009)." to mean that wisdom is timeless.