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The biggest problem with Keynes is a psychological one. It makes sense to spend more during tough times, but it's a career suicide for a politician to suggest
by nikanj 8y ago
The biggest problem with Keynes is a psychological one.
It makes sense to spend more during tough times, but it's a career suicide for a politician to suggest tightening the purse strings when the times are good.
In essence, modern Keynesian politics oscillate between "The times are bad, we have to spend more", and "The times are good, what do you mean we can't afford to spend more".
- ScottBurson 8y ago> it's a career suicide for a politician to suggest tightening the purse strings when the times are good Not necessarily. In 2014, California Proposition 2 (originally 44) passed with over a 2-to-1 margin [0], reforming and expanding the "rainy day fund" created by 2004's Proposition 58. California now has almost $30B in surplus [1]. [0] https://ballotpedia.org/California_Proposition_2,_Rainy_Day_Budget_Stabilization_Fund_Act_(2014) https://ballotpedia.org/California_Proposition_2,_Rainy_Day_... [1] https://www.politifact.com/california/statements/2018/dec/18/jerry-brown/does-california-have-budget-surplus-nearly-30-bill/ https://www.politifact.com/california/statements/2018/dec/18...
- crdoconnor 8y agoStill beats tightening the purse strings during recession.