Yves Smith has guest post by Paul Davidson author of The Keynes Solution. I generally liked the post and recommend you read it too. Here are some points I would like to make:
- Republicans abhor government but still want to get elected. Sounds like wanting the job you hate doing.
- It is never about taxes it is always about demand, if demand exists taxes are affordable. Don't eliminate taxes make them affordable by getting demand.
- Prudent regulation is good idea. Else it is like a football match without referees and ground markings.
- At 2008, either solution Keynes or otherwise would have worked. Today only alternative is Keynes.