The Waterloo of Keynesianism (military and domestic)

The Hawblog
by David T. Beito

02/20/09

While it is perilous for any historian to predict the future, we may well be headed for the Waterloo of Keynesianism (both military and domestic) and that is a good thing. Crudely put, Keynesianism (so named for the British economist John Maynard Keynes) is the theory that government’s can speed long-term recovery by running high deficts so as to stimulate aggregate demand or investment. It is the entire basis of Obama’s stimulus plan. To some extent, Keynesian ideas were the basis of Bush’s massive bailout and big spending policies, most especially his now forgotten ’stimulus checks.’ The popularity of the Keynesian theory is something a puzzle (at least to me). Few ideas more defy ordinary common sense...

//adjix.com/67rs


Informant: Thomas L. Knapp



//freepage.twoday.net/search?q=Obama
//freepage.twoday.net/search?q=stimulus
//freepage.twoday.net/search?q=Keynesian
//freepage.twoday.net/search?q=David+T.+Beito

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