Question

Keynes is famous for saying, “In the long run, we are all dead.” His theory focuses only on the short run. Do you think government leaders should ignore the long run and only consider the short run when they make policies?

Answer 1

In the long run we are all dead by Keynes indicates if we consider economy only for the short run we might kill our economy before its time. The government leaders should recognize that the boom, not the slump, is the austerity time, and cuts in spending right now can be a disastrous policy. In my opinion the government leaders should not ignore the long run. The sole focus on short run can damage the enlightened self-interest of current generations. We hold responsibilities to future generations also. Although the long-run outcome depend a lot on how the government leaders work in the short run.