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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: studdog who wrote (178352)	12/31/2011 12:36:58 AM
From: bentway	Read Replies (1) \| Respond to of 543029

" Everyone seems to conveniently forget the other half of Keynesian economics, that is, austerity, decreased government spending, and taxation during good times." That's the part of Keynesian economics that never gets applied. But even with Reaganomics, the taxes were cut, but the spending was INCREASED instead of cut! So, both schools fail because their prescriptions are ignored. Keynesian economics seems to have logic on it's side, if it was ever followed as prescribed.

To: studdog who wrote (178352)	12/31/2011 9:40:46 AM
From: Steve Lokness	Respond to of 543029

<<< The blame goes around to all the clowns in DC but the republicans have been particularly heinous in their actions and misrepresentation of what Keynes was all about.>>>> Oh I agree completely that most of the blame belongs to Bush; not only for the reasons you mention but because he decided to fight two wars without paying for them (in good times), but also because he greatly increased the size of government (Homeland Security) and he also increase social safety net programs without paying for them (doughnut hole drugs). But you have to be a realist. There is politics involved and Keynesian fails precisely for this reason. There is nothing that forces government to pay back the money in good times. That is completely naive in todays world. It means the government in power must increase taxes. AND then now we see the result when you don't as the debt endlessly mushrooms. Krugman is horribly in his inability to explain how we get politicians who want to get reelected to take this austerity path. ..........And then there is Greenspan and easy money, ............but that's a different argument. It's all well and good to say the blame belongs to the republicans, but that ignores the world we live in - a democracy.