Day By Day

Thursday, January 29, 2009

Even Lord Keynes Didn't Believe In Obama's Version of Keynesianism

Our fine young President seems to feel that the New Deal failed because FDR didn't go far enough with Keynesian stimulus spending [here]. That is odd considering what Lord Keynes had to say about the programs in 1942 after observing their performance:

Organized public works, at home and abroad, may be the right cure for a chronic tendency to a deficiency of effective demand. But they are not capable of sufficiently rapid organisation (and above all cannot be reversed or undone at a later date), to be the most serviceable instrument for the prevention of the trade cycle.

Read it here.

Hmmm, let's see..., what other instrument might be available and more serviceable...? How about tax cuts!