Tuesday, November 20, 2012

"You Might be a Keynesian if..."

If you believe that the looming cuts in government spending will drag us down into another recession.  

That, my friends, is exactly what Keynes is talking about when he describes his Grand Experiment: The coming war with Germany will produce a massive government expenditure on arms and armaments which in turn will have a big impact on the unemployed, by providing them with jobs, and on others by the rising demand for goods and services throughout the economy.
When I hear Republicans, politicians who have espoused the failed policies of Reagan and the supply siders, talk about the perils of the "Fiscal Cliff," I can't help but laugh...

We are, indeed, all Keynesians now.

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