[lbo-talk] Liberal Austerity

[Politicus E.]

Henwood wrote:  "It's one thing to say that stimulus shouldn't be withdrawn
too quickly, and another to say you can't keep running deficits of 6-7% of
GDP indefnitely [sic]. You can't, though maybe Max would think that's ok."

I disagree.  It is a slippery slope from the assertion "you can't keep
running deficits of 6-7% of GDP indefinitely" to the claim "the stimulus
should be withdraw."  An important foundation of the present communications
strategy of the Republican party is precisely, of course, moving from the
view that the federal government can't keep running these deficits
indefinitely to the conclusion, for example, that stimulus is not needed.

My comment about Ricardian equivalence was an attempt to get you to disclose
your theoretical position on this.  What is your argument?  Is your position
neo-Keynesian along the lines of DeLong?  You buy into some variant of the
quantity theory of money?

Your response to Cox, earlier in this thread, you held the
Post-Keynesian-cum-Marxian class conflict view of inflation.

epoliticus