Quote:
Originally Posted by Ethersync
I predict that historians will look back at this time period and talk about how this crisis proved Keynesian economics is a failure. Time will tell though  |
Perhaps, but for now it's
the theory backed by most of the world's leading economists.
The problem I have with the way people interpret Keynes is that they think deficits don't matter, ever.
I think deficit spending should be reserved for extraordinary economic situations like this one, and of course for war, when your survival as a nation is at stake.
Otherwise, I think budgets should be balanced and debts should be paid off. Running a deficit during times of peace and prosperity is ridiculous IMO.