View Full Version : We're all Keynesians (in a GOP administration)

05-27-2012, 02:55 PM
Said former Bush speechwriter David Frum recently.

Apparently, Mitt Rmoney agrees:

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">The real news in Mitt Romney’s interview with Mark Halperin, as Charles Pierce points out, is that Romney openly repudiated the central argument his party has been making against President Obama for the last three years: that he spent too much money and therefore deepened the economic crisis. Indeed Romney himself had been making this very case as recently as a week ago (“he bailed out the public sector, gave billions of dollars to the companies of his friends, and added almost as much debt as all the prior presidents combined. The consequence is that we are enduring the most tepid recovery in modern history.”) But in his Halperin interview, Romney frankly admits that reducing the budget deficit in the midst of an economic crisis would be a horrible idea:

Halperin: You have a plan, as you said, over a number of years, to reduce spending dramatically. Why not in the first year, if you’re elected — why not in 2013, go all the way and propose the kind of budget with spending restraints, that you’d like to see after four years in office? Why not do it more quickly?

Romney: Well because, if you take a trillion dollars for instance, out of the first year of the federal budget, that would shrink GDP over 5%. That is by definition throwing us into recession or depression. So I’m not going to do that, of course.

Of course! Romney says this as if it’s completely obvious that reducing the deficit in the short term would throw the economy back into recession, even though he and his party have been arguing the opposite case with hysterical fervor. Republicans have committed themselves to Austrian economic notions and other hoary doctrines justifying the position that reducing deficits is a helpful way out of a liquidity trap.

I’ve thought that this represents primarily a case of self-delusion in the cause of political self-interest, as opposed to conscious cynicism: Republicans understood that bigger deficits would spur faster growth and reduce their chances of regaining power, so they found themselves more persuaded by theories suggesting bigger deficits wouldn’t really help. But if they had really converted to this belief, wouldn’t there be even a tiny bit of wailing about Romney’s open endorsement of Keynesianism? It’s not as if conservatives have been shy about holding his feet to the fire when he expresses some tiny deviation from their position. Yet I have noticed zero conservative complaints about Romney’s big fat wet kiss to John Maynard Keynes, which suggests their level of actual devotion to this position borders on nil.

The rest, here. (http://nymag.com/daily/intel/2012/05/romneys-big-fat-wet-kiss-to-keynesian-economics.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+nymag%2Fintel+%28Daily+Intell igencer+-+New+York+Magazine%29&utm_content=Google+Reader)

05-27-2012, 04:53 PM
Praps, but probly knot. Koz, no-one in theusofa really knows or understands what Keynes sayd.

A big Gov deficit aint necessaryly Keynesian.
Gov big spending aint necessaryly Keynesian.

Keynes sayd (early on, ie Keynes junior, ie Keynes the 1st, ie in the early days) that (to fix nonemployment)the gov spending hadtabe not only big, but hadtabe nonfunded.

And theusofa haznt uzed Keynes since WW2. Big gov big spending aint medicine, its only a placebo.
Except that most placebos do some good 25% to 50% of the time.
Whilst fake Keynesian pills are praps lets say less than 10%.
And a true Keynes pill iz 100% effektiv.

"Theusofa haztabe vewy vewy carefull".
Elmer Fudd -- NRA prezident.