In Defense of Keynes

Only $8 billion? I doubt wars stimulate economies...at least for the losers. America won wwII. Our military simply made it safer to invest in the US. As for the banks during the great depression, the Fed stood idly by as they failed even though its job was to provide loans to them. It didn't happen. Gold from our positive trade balance was hoarded and money was not printed. My opinion of stimulus spending is that tends to get misappropriated.

What banks? Where?

Bush gave Americans $250, while he spent $8 billion per month for 6 years. Unfortunately, the war money was spent unwisely and much was stolen and never located. Whatever money that was wasted in Iraq did not have a Multiplier Effect in America. Therefore, the economic pump was not primed.

The fact that war no longer keeps America afloat economically, is of great concern. What will America do next? Workers guaranteed jobs, state owned enterprises, mortgages paid off?

Clearly-spoken for your point of view although the arguments seem a bit simplistic and ignorant to me. i believe Friedmanites would argue the Fed failed to provided cash to banks to keep them from failing. Keynes argued for increased spending to upright economic downturns. By that logic, Bush didn't spend enough--we should have had bigger deficits; and the war should have made our economy stronger rather than weaker.

its pretty hard to defend keynes....lol...end the fed....it will happen.....von Mises all the way

Too bad Al Gore didn't win. I don't think he would have been interested with passing those tax cuts. Especially with 51 votes...

Since Reagan era Supply-Side "trickle-down economics" mostly have dominated your goverments.J.K Galbraith noted that in had been tried before in the United States under the name "horse and sparrow theory" causin great damage.He wrote,"Supply-side economics was merely a cover for the old trickle-down approach to economic policy—what an older and less elegant generation called the horse-and-sparrow theory: If you feed the horse enough oats,some will pass through to the road for the sparrows."

@zsylvana

Yeah, I agree. I am in favor of government intervention, but the intervention has to be done right. Trickle-Down economics is not a form of intervention that works. It failed under Hoover, it failed under Reagan, under Bush the 1st, and under the most recent Bush.

Give me a break. Republicans or incompetent retards, stuck in the 1950's...

@BMoIWU0711

Keep in mind that the Founders wrote the Constitution well before the Industrial Revolution got out of control. There was no such thing as monopolies back then.