A return to Keynesianism for America's economy is the answer

Ardent15

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Sat Feb-06-10 02:38 AM
Original message

A return to Keynesianism for America's economy is the answer

This is so obvious a solution that it's ridiculous to have to state it.

Complete socialization of the economy is not the answer, nor is the neoliberalism/military Keynesianism that America's government currently is based on.

Rather, a mixed economy is what will make America great again.

It's what made America's economy so great in the 40s through the 70s, between a mix of both Democratic and Republican administrations.

But unfortunately, conservatives and neoliberals took control of the GOP in the 60s/70s and the Democrats in the 90s, and the resulting governments have been disastrous for our country.

Both parties now preach the free market gospel. Economic inequality is rampant, with Wall Street being rewarded and Main Street being punished. The results of free-market economic liberalism.

Keynesianism, however, is the fairest economic system, and the most sensible.

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Lasher

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Sat Feb-06-10 02:53 AM
Response to Original message

1. The ongoing financial crisis prompted a resurgence of interest in Keynesian economics.

It's about time. There are many of us who never bought into the laissez-faire capitalism that has brought us to ruin.

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provis99

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Sat Feb-06-10 03:08 AM
Response to Original message

2. allow me to plug Paul Davidson's new book:

"The Keynes Solution: The Path to Global Economic Prosperity". It nicely plants a stake in the heart of Reaganomics, Milton Friedman, and Alan Greenspan.

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FarCenter

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Sat Feb-06-10 12:00 PM
Response to Original message

3. The Keynesian prescription of government spending to replace consumption spending

assumes that the government has the fiscal resources to borrow and spend.

That is true if the government runs surpluses, or at least reasonably balanced budgets during good times.

Alas, we have not.

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Keynes

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Sat Feb-06-10 05:12 PM
Response to Reply #3

7. government deficit is not the problem

Sorry but the government does not have to worry about deficits
 -- or  having "the fiscal resources to borroe" in
order to save us from the terrorism of a Great Recession.  The
government did not worry about huge deficits  (up to 30 per
cent of GDP in a year) when defending us against attacks
(Remember Pearl Harbor) in the second world war.

If you want to understand why you must read my book THE KEYNES
SOLKUTION

Paul Davidson

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backscatter712

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Sat Feb-06-10 12:10 PM
Response to Original message

4. First, we've got to stop outsourcing/offshoring.

Keynesian stimulus works best when it stays in this country. If we continue to offshore jobs & factories to China, the stimulus will work poorly.

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Keynes

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Sat Feb-06-10 04:42 PM
Response to Reply #4

5. Offshoring and Keynes's solution

If you read my book THE KEYNES SOLUTION: THE PATH TO GLOBAL
ECONOMIC PROSPERITY [Palgrave, New York, 2009] you will see
that Keynes has a solution not only for getting us out of the
unemployment mess we are in -- and some believe we will suffer
through for several years-- but also to stop offshoreing of
American jobs so that government stimulus spending creates
jobs for the American work force --   If only the Obama people
would pay attention!!

Paul Davidson

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mmonk

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Sat Feb-06-10 04:46 PM
Response to Original message

6. I agree. However, our party is run by "free market" conservatives.

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Keynes

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Sat Feb-06-10 05:16 PM
Response to Reply #6

8. hy free market conservatives in the democratic party -- and the Obama administration

Why is the Administration that touted "change" when running for the Presidency -- still taking advise from Wall Street market people such as Geithner, etc.

Well as Keynes said "It is better for reputation to fail conventionally than to succeed unconventionally"

Paul

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roamer65

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Sat Feb-06-10 05:19 PM
Response to Original message

9. How do you run continuous, large fiscal deficits without causing a currency crisis?

That's the 64K question here.

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mmonk

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Sat Feb-06-10 06:28 PM
Response to Reply #9

10. Reaganomics says you reduce taxes at the top causing a "growth" economy

while increasing spending for the military industrial complex and inflating the money supply while cutting "entitlements". It's called voo doo economics.

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Keynes

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Sun Feb-07-10 10:30 AM
Response to Reply #9

11. deficits and currency crisis

The US is not Greece. The US dollar is the rock stabilizing the entire world economy. If you would only read the book THE KEYNES SOLUTION: THE PATH TO GLOBAL ECONOMIC PROSPERITY you would understand .

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