tag:blogger.com,1999:blog-2181921610078796867.post6621555298508587560..comments2023-10-15T07:10:27.220-04:00Comments on Easy Opinions: Keynes, Digger of HolesAndrew_M_Garlandhttp://www.blogger.com/profile/02855052302054611917noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2181921610078796867.post-35289978730609792632009-02-25T19:24:00.000-05:002009-02-25T19:24:00.000-05:00Obama is not following Keynsian economics. The mod...Obama is not following Keynsian economics. The model for Keynsian economics is Great Britain during the years of the Depression. <BR/><BR/>I do not think that Keynes would agree with Obamanomics because the prescription is inherently flawed. Keynes actually recognized that he had a theory and that in certain economic conditions the theory was flawed. Whilst he was not a Socialist or a Marxist, Keynes did state that his theory worked best in a communist country. <BR/><BR/>Keynes produced his theory during the Great Depression. He was evaluating the problems created by the harsh requirements for Germany to pay war debt. What he believed is that in times of HIGH unemployment there should be increased spending on public works. However, it is questionable that we do in fact have a period of high unemployment to the extent that we had during the Great Depression. <BR/><BR/>Yeah, my husband is one of the unlucky ones put out of work because of the bloat in an ex-government, quasi-public company that is undergoing difficulties in the airline industry. Their policies really suck. <BR/><BR/>Keynes's theories worked up until the period when we hit stagflation. After that, we needed something new, but the kind of analysis done by Keynes has not really been repeated by any other economist of note or worth. My own criticism of George Bush Jnr happens to be that he did not follow Keynes in a vital area and that has meant an increase in the debt burden - Keynes actually wrote that in a time of war taxes should be raised rather than have deficit spending. This was not done, thus the debt burden has increased. <BR/><BR/>Otherwise I agree with your comments, and I think that the stimulus is a real mistake - including in my own country AustraliaMaggiehttps://www.blogger.com/profile/00532250145038548627noreply@blogger.com