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View Diary: Ah, The Defense Keynesians Are Here (63 comments)

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  •  Yeah (0+ / 0-)

    The common dodge of the Keynesianism defender. I always put the same challenge out and get zero response.

    Keynesianism is supposed to be this law of economics, right?

    Simple question: Name another scenario than the New Deal that Keynesianism worked, in any country, ever. Bonus points for it being comparatively recent.

    Japan: complete failure as I described (but you will not even entertain) despite doing exactly what you think we shoulg be doing. Greece: Massively overspent and collapsed. The US housing bubble: formed from Fed "stimulating" intervention by cutting rates too far.

    Every time the lesson is taught. Spend within your means, be frugal and careful, or be destroyed.

    (-5.50,-6.67): Left Libertarian
    Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

    by Sparhawk on Mon Dec 03, 2012 at 02:27:34 PM PST

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    •  How about the US in 2008? (1+ / 0-)
      Recommended by:
      Kevskos

      The Obama stimulus created jobs and helped get us out (as much as we are). A larger stimulus would have done a much better job, but at least we have had some job growth. Europe chose austerity and they are heading back into another recession.

      I don't know the specifics of Japan. But I do know that Krugman studied Japan carefully and that is why he is more of a Keynesian than he was before. Perhaps you should read Krugman's work on Japan.

      •  Re (0+ / 0-)
        The Obama stimulus created jobs and helped get us out (as much as we are).
        We aren't "out". We're running massive trade and government deficits (over 100% of GDP now... it used to be at 50%!). And we're running 10% of GDP deficits which means the problem gets 10% worse a year.

        We papered over a private debt problem by making it a public debt problem. What's the next step?

        (-5.50,-6.67): Left Libertarian
        Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

        by Sparhawk on Mon Dec 03, 2012 at 04:25:06 PM PST

        [ Parent ]

        •  Rather (1+ / 0-)
          Recommended by:
          Kevskos

          Debt at 100% of GDP, not deficits obviously.

          (-5.50,-6.67): Left Libertarian
          Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

          by Sparhawk on Mon Dec 03, 2012 at 04:25:32 PM PST

          [ Parent ]

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