Friday, March 6, 2009

Keynes, spending freeze, a sing-a-long -stupid

On and off for over a half a century, democrats have trumpeted the economic philosophy of John Maynard Keynes. The general idea is that through massive borrowing and spending, the federal government can soften an economic downturn, essentially taking on risk and losses that private capital is unwilling or able to absorb. The recent stimulus bill passed by Congress and signed into law by President Obama assumes that federal government spending will, in effect, soften the blow (or in the positive, stimulate the nation's economy). Republicans have long opposed the philosophy of Keynes and in fact house republicans voted in unison (all 177 members) against the stimulus bill.

The latest broadside against the notion that government spending will induce economic growth was lobbed by a covey of republicans today, led by House minority leader John Boehner.

So where is President Obama on this debate?
This from Andrew Leonard at Salon

Obama on Jan 29, 2009 "Our workers are no less productive than when this crisis began. Our minds are no less inventive, our goods and services no less needed than they were last week or last month or last year. Our capacity remains undiminished."

Keynes in 1930 "We are as capable as before of affording for everyone a high standard of life -- high, I mean, compared with, say, twenty years ago -- and will soon learn to afford a standard higher still."

And more from the googlesphere (timestamp on this search 10:32PM EST)

Recovery and Reinvestment 102
Campus Progress - ‎8 hours ago‎
Economist John Maynard Keynes termed the current problem as a “lack of effective demand.” Let’s say your car has broken down and you need a new one—you want ...

David Moenning's Daily State of the Markets: 3/6 (subscription) - ‎11 hours ago‎
However, one of the most important things to remember about the ‘big bears’ is that, in the words of economist John Maynard Keynes, “the market can stay ...

Hand out cash and make us spend it
Gulf Times - ‎6 hours ago‎
How can a British Labour government ignore every lesson taught it by Keynes? How can policy remain dominated by one single maxim, that no bank should be ...

Living with the consequences of our choices
Windsor Star - ‎20 hours ago‎
Barack Obama and Stephen Harper have. So have many other others. But language has consequences. "The attention paid to the Depression story may seem a ...

Krugman y Currie: el salvataje bancario y el New Deal
El Argentino - ‎15 hours ago‎
Una frase del mismo Keynes abre la cuestión. Luego de un viaje que realiza a los Estados Unidos en 1934, antes de la publicación de su Teoría general, ...

Now, the sing-a-long!

"Hey we're not stupid!" oldie but..

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