Posted on 08/01/2011 8:24:53 AM PDT by re_tail20
The Republicans are killing Keynesian economics with their attempt to cut spending as the economy rebounds from a recession, Senate Majority Whip Dick Durbin (D-Ill.) said in a floor speech on Sunday.
“I would say … that symbolically, that agreement is moving us to the point where we are having the final interment of John Maynard Keynes,” he said, referring to the British economist. “He normally died in 1946 but it appears we are going to put him to his final rest with this agreement.”
Keynes argued that aggregate demand was not always enough to spur full employment and that outside structures, such as governments, could influence the economy to create jobs and regulate business cycles. His thinking influenced later New Deal spending by President Franklin Delano Roosevelt.
(Excerpt) Read more at vxec.com ...
Yes, this new batch of young whippersnappers may have rocked DC to it’s core.
More power to them.
“he blessedly died in 1946”
they are positioning themselves to be able to blame it on “Republican cuts”.
And the lame stream media will play along.
“Keynesian economics always kills Keynesian economics.”
I heartily disagree. Keynesian economics has always been its own justification. It cannot ever fail, because when it screws things up it can always, always blame whatever remains laizzes-faire.
“Debt Deal Will Be The Death Of Keynesian Economics”
???????
Hello! Even if you’ve saved fiscal policy (and you haven’t), there’s still this little thing called the Federal Reserve System.
“where is this continued mantra coming from about ‘rebounding from the recession’ or ‘recovering economy’????
where have i been all this time????”
If there is economic growth, as they measure these things, after a period of “recession” (two or more quarters of “negative growth”[What the heck is “negative growth,” you ask? Contraction, that’s what? Why don’t they just say that? Because even if there isn’t any, the word “growth” sounds better.]), you are in a “recovery.” It doesn’t matter how pathetic is said growth, nor how likely it is to be reversed. One percent is one percent, and interested parties will cling to it like a plank of wood in a raging sea.
“You deficit spend during a recession, you pay the debt back when the economy is growing thus smoothing out the highs and lows”
I’d like if you could quote me where he lays this out. I wouldn’t reject it out of hand, as he constantly contradicted himself. But as I understand Keynes, he wanted the pump to be primed perpetually, not just when things are trending down. Fundamental to an understanding of the Keynesian system is his belief that the balance of savings to investment is chronically out of whack, and the correct balance is always more, more, more investment. And I do mean always.
Where this idea came from that he aimed to smooth out hills and valleys, I don’t know. Perhaps from accollades who realized how awful was the truth of the system. Keynes was quite emphatic that the goal was eternal Boom, not permanent quasi-bust. Forever September, 1929, might as well have been the motto.
I like to say it another way.
SOCIALISM ALWAYS FAILS.
Thanks for that quote. It illustrates the truth that Keynes was not proposing just an economic policy. He was proposing a strategy for instituting socialism through economics.
Good Gawd I hope so. Chrissy Matthews keeps weeping and wanting to bring back the job camps of the 1930’s. Talk about living in the past. Democrats are very stupid about economics and business.
Will Newsspeak magazine run a front page article about “We’re all Capitalists Now!!”
Bingo
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