The 2011 version of the Works Progress Administration (WPA)

Check out the video below (obtained from here) where the chief economist from a subsidized US bank suggests that bulldozing houses would have been great for the economy two years ago since there was an over supply of homes then. Of course he refers to Keynes in the justification for such an irrational idea. He thinks this would be a great way to put people to work. The digging-holes-and-then-filling-them-back-up-again is an acceptable program, according to this guy, for putting people back to work.

If this guy is an "economist" then why does he not understand supply, demand, and prices? There is a price at which the homes will sell. That is the purpose of a market - determining prices based on subjective consumer valuations and supply.











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