The pseudonym "Philo Vaihinger" has been abandoned. All posts have been and are written by me, Joseph Auclair.

Thursday, February 7, 2013

Keynesians and anti-Keynesians



A Keynesian approach aims at recovery of the labor market to keep up the price of labor as much as possible and, if possible, to actually diminish inequalities of income and wealth by enlarging the share ordinary folks get of the economic pie.

The point of anti-Keynesianism is the exact opposite – to pull the rug from under the labor market, drive down compensation, and increase inequality by beating up the working class and ordinary people in general for the sake of the rich.

Hence the “austerity” approach to the recession of 2008 and its lingering sequelae.

In fact, not all of us even think of a recession as a bad thing, in net.

Far from it!

Hence the enduring popularity on the right of the debt ceiling.

Hence also the enduring popularity of a balanced budget amendment aimed at insuring future tax revolts and tax cuts have to result in immediate reductions in government spending.

Reductions conservatives suppose they will always be strong enough to take out of the hide of American social democracy and the progressive, regulatory state.

Not a bug, I say.

A feature.

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