Presumably (in popular thinking) Obama and his administration's economic policies are based on Keynesian economic theory. It is a legitimate theory, but is obviously not liked by more free-market advocates. But it appears that the administration is not following or advocating what Keynes said to do in an economic downturn.
Keynes was against the very sort of large structural deficits that characterize contemporary federal budgets and policy, believing instead that deficits should be "temporary and self-liquidating." And Keynes believed that any sort of counter-cyclical spending by government should be directed toward increasing private investment, not simply spending current and future tax dollars on public works projects.
If this is true, then the Obama administration is just spending money without theoretical support based on any economic theory.
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