April 17, 2012
Keynesian Economics is a Beach!
Worried about how to pay for that summer vacation? Take heart. Today's Keynesians want us living the beach life every day. Thank John Maynard Keynes (d. 1946), one of TIME magazine's Most Important People of the 20th Century, for the politicians who believe we can spend our way out of bankruptcy and recession. His advice for fixing "this God-awful recession," as the vice president calls it, might be much like his prescription for curing The Great Depression: "fill old bottles with bank notes," bury them in the sand for enterprising beachgoers to dig up, then watch "the real income of the community, and its capital wealth" improve. Then again, even he might look at the president's failed stimulus spending and say, "Enough with the bottles already...time to cut taxes!" It's true that Keynes was a liberal who advocated spending and budget deficits, but he wasn't a reckless ideologue bent on destroying capitalism. In fact, he called Marxian Socialism...(Read Full Article)