Old faithful showed its value again. I'm not talking about the geyser. It's my old favorite, Google Reader and, more accurately, the quote reader I've subscribed to.
Today was a quote by John Maynard Keynes - a noted British economist. Ever heard of Keynesian Theory? That's the guy. He thought it was a good idea for the government to use monetary and fiscal policy to mitigate the negative effects of economic recessions. One of those tools is lowering interest rates to a level whereby the public reacts and starts borrowing/spending.
I think we could potentially blame him for the effects of the oil crisis in the 70's. I wasn't old enough to know there was a crisis going on, or even what oil was, but I have seen the pictures of people lined up around the block for a few gallons of gas. The oil crunch was due in part to oil being very expensive (it wasn't unavailable, just internationally we weren't in a good spot) but also due to the fact that the government, subscribing to Keynesian theory on government intervention in times of financial crises, decided to lower interest rates a few times in a very short period of time.
What that effectively does is to create easy money - it was very easy for any joe shmoe to get a loan and not spend it wisely, by paying down debt, buying government issued bonds (thereby putting money into a usable state for the gov't), or anything else that would actually help counteract an impending recession. Nope, instead, people are people and what do they do? They blow cash on cars (which require oil), homes (which require oil to heat), and other non-essential items. Thanks a lot, Mr. Keynes. I'm sure he wasn't to blame, it was our Fed but still, you get the picture of who the guy is and what impact he's had. He was a brilliant economist, don't get me wrong. I just think gov'ts sometimes inappropriately apply his principles.
The quote today was:
"I do not know which makes a man more conservative - to know nothing but the past, or nothing but the present."
I'd say that knowing nothing but the past makes a person more conservative. Knowing where you came from allows for knowledge of past mistakes and successes. Knowing nothing but the present could lead to a lack of understanding of consequences. Come to think of it, I guess if you know nothing but the past, you don't know what the consequences of the past are, considering you don't know the present. Great, see that? I've just talked myself into a corner. I'm going to stick with my original answer - knowing only the past makes a person more conservative. I wonder if there's an expectancy theory to someone who only knows the past?
Knowing (and living in) only the present makes you a Jedi. At least that's what Yoda say, yo.
P.s. - Perez Hilton was at Paris Hilton's birthday party. Do you think anyone who wasn't 'in the know' was confused?