4 ms·
Truly great concept except this "sometimes" of point (1) gets sacrificed to political expediency, and Keynesian stimulus ends up being the normal and expected r
by creer 2y ago
Truly great concept except this "sometimes" of point (1) gets sacrificed to political expediency, and Keynesian stimulus ends up being the normal and expected rather than an emergency measure.
It's hard to resist and not to always print money, not just occasionally, and not to (just about) always run a large deficit, not just occasionally, and not fund petty hobbies - not just productive infrastructure - with borrowing.
- throw0101d 2y ago> It's hard to resist and not to always print money, not just occasionally, and not to (just about) always run a large deficit, not just occasionally, and not fund petty hobbies - not just productive infrastructure - with borrowing. At that point it stops being Keynes (stimulus) spending and just becomes spending. The point of Keynes, especially in light of when he originally wrote (the 1930s), is to boost demand to help an economy get back on its feet. Once it's running fine then the "extra" spending can be dialled back. Of course there could be other reasons why government wants to continue (deficit) spending, but those are separate from Keynesian stimulus.