Durbin: Debt Deal Will Be The Death Of Keynesian Economics

[teacherone]

WOOT!

WASHINGTON -- The Republicans are killing Keynesian economics with their attempt to cut spending as the economy rebounds from a recession, Senate Majority Whip Dick Durbin (D-Ill.) said in a floor speech on Sunday.

"I would say ... that symbolically, that agreement is moving us to the point where we are having the final interment of John Maynard Keynes," he said, referring to the British economist. "He normally died in 1946 but it appears we are going to put him to his final rest with this agreement."

http://www.huffingtonpost.com/2011/07/31/durbin-debt-deal-keynes-deficit_n_914356.html

[Travlyr]

If only it were that easy.

[Seraphim]

Some of the comments are brutal.

[MozoVote]

Cutting expenditures worked for Warren Harding, before Keynes went mainstream.

[TCE]

I lol'd so hard. The stimulus is still going on, how is Keynesianism dead?

[Theocrat]

"Their fear, and the fear that I share, is that if we make spending cuts at this point, it will not help economic recovery," he said.

Yes, it will, Durbin. He's looking at it in a short-term analysis, but in the long-term, the economy will recover. Besides, we just can't borrow more money to get ourselves out of debt. It's another scare-tactic, similar to the "too big to fail" mentality. It simply prolongs our economy from correcting itself, and it encourages more wasteful spending.

[flightlesskiwi]

Yes, it will, Durbin. He's looking at it in a short-term analysis, but in the long-term, the economy will recover. Besides, we just can't borrow more money to get ourselves out of debt. It's another scare-tactic, similar to the "too big to fail" mentality. It simply prolongs our economy from correcting itself, and it encourages more wasteful spending.

sounds like a passage from "economics in one lesson". :D

[MJU1983]

Woot! :)