We are all Keynesians now

Mathew Forstater forstate at levy.org
Fri Jun 5 13:44:05 PDT 1998


There are two convincing explanations for the Reagan deficits.

1) As Doug says, they were intended as supply side tax cuts, and they didn't work. The tax base didn't increase so much as a result of the cut in rates to end up with a larger tax revenue.

2) The Repubs decided that the way to permanently destroy Keynesianism, big government, the welfare state, social programs, and other forms of socialism(!) once and for all was to intentionally be so "fiscally irresponsible" as to forever force cuts in government spending, goverment programs, etc. David Stockman I believe charges this in his memoirs and I have heard it stated by others with conservative think tank links, and most importantly, it worked.

Then there is the old one about viewing the "largest peace time military buildup in US history" as an "investment" in forcing the downfall of the SU.

Mat Forstater



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