Charles
^^^^^^^
Fwd: Unemployment in China Charles Brown charlesb at CNCL.ci.detroit.mi.us Thu Jun 4 13:45:15 PDT 1998
And when I was in college, I think it was my economics 101 textbook had a quote of some economist: "We are all Keynesians now."
CB
We are all Keynesians now DENNIS_CLAXTON at fragomen.com DENNIS_CLAXTON at fragomen.com Thu Jun 4 14:07:28 PDT 1998
Previous message: Fwd: Unemployment in China
Next message: We are all Keynesians now
We are all Keynesians now Fellows, Jeffrey jmf9 at cdc.gov Fri Jun 5 13:01:00 PDT 1998
Doug wrote: [paraphrasing] "Reagan was the biggest Keynesian of them all."
I am not satisfied with the Keynesian characterization of Reagan's deficit spending. It seems to me that the purpose of Keynesian pump priming is to increase effective demand (of consumers, broadly defined). The combined tax cuts and growth in military spending, along with other attacks on labor, acted to redistribute income up the ladder, possibly even more than it spurred production(?), by lessening the present and future tax burden on the rich and redirecting economic activity toward monopoly producers). It seems that for most people, personal debt and second jobs were the principal means of increasing effective demand. I don't think Keynes had increasing the demand of rich folks in mind, especially since he was well aware that increased wealth led to declining rates of consumption. So what would have been the impact on GDP if the tax cuts had maintained the existing degree of progressiveness, and the spending had been on affordable housing, universal health care, education?
Another question must be asked, just because a broad outcome appears Keynesian, does that mean the parties responsible were Keynesian or invoked Keynesian policies?
Jeff
e are all Keynesians now Charles Brown charlesb at CNCL.ci.detroit.mi.us Fri Jun 5 14:20:55 PDT 1998
Previous message: We are all Keynesians now Next message: Calif turnout? Messages sorted by: [ date ] [ thread ] [ subject ] [ author ] Search LBO-Talk Archives
Limit search to: Subject & Body Subject Author Sort by: Reverse Sort
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.