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To: LucianOfSamasota

There are no contradictions is Keynesian economic policy.

It is 100% consistent—consistently wrong.


2 posted on 05/07/2012 10:26:26 AM PDT by Brookhaven (Don't mistake my vote for Romney as a vote FOR Romney, it's a vote against Obama.)
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To: Brookhaven

You are completely right about what is labeled “Keynesian economic policy” today. Keynes himself wouldn’t support it. First, Keynes would have diagnosed the problem. If the root of the problem is too much debt and too much spending — the cure is not more spending. Second, Keynes called for debts to be repaid, during the upswings in the economy. He even advocated acquiring surpluses, to pay for the counter-cyclic spending, during the dips.


3 posted on 05/07/2012 11:05:16 AM PDT by USFRIENDINVICTORIA (In theory, there's no difference between theory and practice. In practice, there is.)
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To: Brookhaven
There are no contradictions is Keynesian economic policy.

It is 100% consistent—consistently wrong.

The trouble with today’s Keynesians is that they have never read Keynes and do not understand his theory on simulative spending.

Keynes assumed entering a recession from a balanced budget. Then government would spend money to stimulate the private sector (using deficit spending if necessary). Then after a short term increase in simulative spending the government would return to a balanced budget (a return to previous spending levels).

For the modern Keynesians there is never enough simulative spending by government and never a return to sane spending levels nor is there ever an excessive amount of government spending.

For the modern Keynesian any talk of a balanced budget is mean and probably racist political extremism.

4 posted on 05/07/2012 11:08:38 AM PDT by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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