antagon
The Man
- Dec 6, 2009
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that doesn't strike you as a sad commentary? Maybe even terminal?
No, not really.
Keynes advocated social programs as counter-cyclical policy to dampen economic volatility. Unemployment insurance and welfare increase when the economy goes into a recession, buoying demand and softening the downturn. That is embedded in every single developed country in the world. I don't think there is an economist alive - well a credible economist anyways - who would argue that we should get rid of income support programs during a recession.
That is only one of the several ways in which Keynes' philosophy is now endemic to our economy. Keynes opened up the door for monetarist and monetarism has infected almost every aspect of our economy. Even trickle down economics finds it's roots in Keynes' ideas.
i draw a line between keynesian, fiscal approaches and monetarist tactics, though. its the holistic/humanist vs. digital reductionist dichotomy played out in econ policy.