We are all Keynesians now

Charles Brown charlesb at CNCL.ci.detroit.mi.us
Fri Jun 5 14:20:55 PDT 1998

Yes. I forgot about these. How time flies. Number 1 is the Laffer curve theory (ha ha ha). And two is a credible conspiracy theory, turning Goldwaterism fiscal consevatism on its head. There is no doubt that the U.S Evil Empire struck back with Reaganism ,including trying to build a Star Wars system. But the Return of the Jheddi is coming.

It was all state-monopoly capitalism, greater and greater involvement of the state in the direct service of the monopolies, far, far from laissez-faire.

Charles Brown

>>> Mathew Forstater wrote:

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.

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