Friday, March 11, 2011
Keynesian economics: people still don't get it
Republicans complain that bad government policies lead business to put trillions (yes that much) of cash under the pillow, instead of investing it. So, they say, we should cut spending so that business will spend. Well somebody's got to spend it and Keynes demonstrated (and the New Deal and WWII proved) that money is money and if they won't spend it government should. The United States Treasury is not your household budget. But as the U.S. hovered in 1937 on the edge of a double dip depression, the public didn't get it. And they still don't h/t Paul Krugman
Labels:
Keynes,
Paul Krugman,
stimulus
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