October 12, 2018 Friday
Bedtime Story
Why Keynes and Gesell Featured in our Bedtime Story
In the lesser known work of Keynes ‘A
Treatise on Money’ he had argued that whenever in any economic system the
overall savings exceeded investments recession would occur.
In the system whenever the investors find
lack of access to capital the economy will falter.
Money for investments will only come into
the system when people have excess incomes and after spending for their needs
they have surplus to save in banks which in turn will be lent for investments.
Without the savings the central and local
banks do not have any incentive to lower the interest rates which in turn will
make it a problematic for the businesses to borrow money for investment.
Such an economy will inevitably come to
grinding halt or run into recession or depression.
In such an instance the only way to get out
of the slump would be for the government to promote spending.
In view of Keynes thus, any nation’s
prosperity is not determined by its hoarding of wealth in the form of gold,
silver or land/properties by individuals but by the propensity of its people to
consume.
People’s consumption in turn is dependent
on the national income which is the measure of its true prosperity.
Well, let me end up this topic of frugality
and thriftiness (mind you, it was not economics that I had intended to go into
but when one has to speak about subjects such as frugality and then when one
introduces numbers into it, then what arises is by default economics without
anyone intending to do so) since I now I feel replete with nobility having
shown you both sides of the coin though you can presumably guess from my
austere lifestyle on which side I am on.
Just as an aside, yet another British
economist by the name of John Hicks claims that the term “liquidity” for the
first time made its appearance in its economic context in this book of Keynes
‘A Treatise on Economy’.
To set you back on track, let me remind you
why I was forced to digress to Keynes and Gesell.
We had arrived onto the story of Luca
Pacioli who is a sub-story in the larger story of symmetry (and invariance) in
mathematics and art and they both seriously intertwined as in the early
Renaissance art went strongly with sciences not to forget religion since art
was earnestly if not primarily deployed for the promotion of religions.
Symmetry (and the closely related idea of
invariance) in turn is crucial to our even larger story on conservation laws.
Conservation laws in turn, as I had stated
before when I had initiated my story on them, are absolutely fundamental to our
understanding of the universe that we live in.
Conservation laws set limits to the
possibilities and bound the universe with restrictions.
Moreover most of them are absolute such
that no process at any level of comprehension of nature – be it physical,
chemical, biological, geological or cosmological – can escape from their clutches.
Such is their mighty significance.
Stay tuned to the voice of an average story storytelling
chimpanzee or login at http://panarrans.blogspot.com
Good night Mon Ami and my fellow cousin ape.
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Another great educator and a teacher that I am aware of is
Professor Subhashish Chattopadhyay in Bangalore, India.
While I narrate stories, Professor Subhashish an electronic
engineer and a former professor at BARC, does and teaches real mathematics and
physics.
He started the participation of Indian students at the
International Physics Olympiad.
Do visit him here:
All his books can be downloaded for free through this link:
For edutainment and English education of your children, I
recommend this large collection of Halloween Songs for Kids:
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