Friday, July 13, 2012

Keynes returning?

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:

  1. Republicans abhor government but still want to get elected. Sounds like wanting the job you hate doing.
  2. 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.
  3. Prudent regulation is good idea. Else it is like a football match without referees and ground markings.
  4. At 2008, either solution Keynes or otherwise would have worked. Today only alternative is Keynes.