georgephillip
Diamond Member
Suicide by oligarchy in the case of the US, I suspect. Keynes might well argue to re-incentivize the rich to put their money in long-term investments instead of short-term Wall Street loans:I try to remember (and it was something that Keynes was ever-mindful of) that whatever needs to be done must be politically realistic. People vote out of self-interest. They aren't going to fall on their swords for the benefit of future generations. The public won't tolerate a government which promotes short-term pain to the ends of long-term gain. And that's why democracy inevitably ends in suicide.
"In the end there is one way out of this economic mess—Keynes would say we have to shock, push, lure and sweet-talk the rich in this country to part with their money and start enterprises that get us out of debt.
"But how are we going to do that? We can’t even get employers sitting on hoards of cash to hire a few extra workers.
* * *
"So what would Keynes do?
"Well, I don’t know: he’s dead, as we all are in the long run.
"But I have a hunch what he would do. As the solon or lawgiver of modern social democracy, Keynes would look at the most successful social democracy in the world right now.
"What do the Germans, with their hefty trade surplus, do?
"First, they have a whole different type of corporation—with workers making up half the directors on the board.
"And workers have privileged positions in the firms, real power and responsibility. It doesn’t guarantee that corporations invest, but it’s a big help to have workers in director chairs sitting in the boardrooms.
"In addition, the Germans have government-sponsored banks, like the Sparkassen, that lend to businesses. We have the Federal Reserve printing money like crazy, but the banks sit on it..."
What Would Keynes Do The Nation