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The article isn't Keynesian, nor is Keynesianism trash. I do agree that ignorance is destructive. Take away the word "profligate" from consumer spending and y
by xapata 5y ago
The article isn't Keynesian, nor is Keynesianism trash. I do agree that ignorance is destructive.
Take away the word "profligate" from consumer spending and you'll be closer to the truth. Median real wages have been falling for the last 50 years. We need a little tightness in the labor market to change that, and risking some inflation in a period of negligible inflation seems like a wise choice.
- mariodiana 5y agoPerhaps I'm painting with too broad a brush, and if we want to get into a technical argument, I will concede your point; but when I see multiplier effect and savings glut, I don't really need to see much more. The thrust of this is the "market" has failed and more government intervention is the answer. This is the destructive ignorance I'm referring to.
- xapata 5y agoThe article was crap, I agree. Keynes would be better characterized by discussing government intervention to address a market failure, rather than saying the market has failed, which has different connotations. Personally, I disagree with calling government choices an intervention, because the government is a market participant, and both the market and government are embedded in the society which creates them.