| Hawkeye said: Keynesian economics states that you run a surplus in good times and then defect spend like no tomorrow to pull yourself out of a cyclical recession. I doubt it works very well if we deficit spend in good times and then anit-spenders come out of the woodwork during a recession. Lets bail out the auto industry, people! |
Keynsian economics does work if you actually follow it (but we don't). Obviously there are certain situations which Keynsian economics can't cope with, and there are certain ideas from the original Keynsian models that should be abandoned.
For instance, sometimes supply side economics is very helpful when you run into stagflation.
Friedman style classical economic theory has some great ideas about when to use regulation and when to not use it, which anyone following a Keynsian model should consider.
But all in all the Keynsian model is still a strong one if you are willing to incorporate ideas from the other approaches since the Keynsian model can't solve every problem that is thrown at it (just as the other models can't solve every problem thrown at them).
We had two bags of grass, seventy-five pellets of mescaline, five sheets of high-powered blotter acid, a salt shaker half full of cocaine, a whole galaxy of multi-colored uppers, downers, screamers, laughers…Also a quart of tequila, a quart of rum, a case of beer, a pint of raw ether and two dozen amyls. The only thing that really worried me was the ether. There is nothing in the world more helpless and irresponsible and depraved than a man in the depths of an ether binge. –Raoul Duke
It is hard to shed anything but crocodile tears over White House speechwriter Patrick Buchanan's tragic analysis of the Nixon debacle. "It's like Sisyphus," he said. "We rolled the rock all the way up the mountain...and it rolled right back down on us...." Neither Sisyphus nor the commander of the Light Brigade nor Pat Buchanan had the time or any real inclination to question what they were doing...a martyr, to the bitter end, to a "flawed" cause and a narrow, atavistic concept of conservative politics that has done more damage to itself and the country in less than six years than its liberal enemies could have done in two or three decades. -Hunter S. Thompson
