Is Keynesian economics now dead, discredited by a weak stimulus that Democrats have failed to defend?

Kevin Drum:

From Rick Perry, riffing on the Obama presidency:

The other thing this president’s done, he has proven for once and for all that government spending will not create one job. Keynesian policy and Keynesian theory is now done. We’ll never have to have that experiment on America again.

The sad thing is that he’s mostly right. Through a combination of Republican truculence and Democratic timidity, pretty much nobody believes any more in the government’s ability to stimulate the economy. And why should they? If Republicans keeps saying it doesn’t work, and in response Democrats sort of shuffle around looking embarrassed, why would anyone doubt that it’s a completely discredited theory?

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About Guy N. Texas

Guy N. Texas is the pen name of a lawyer living in Dallas, who is now a liberal. He was once conservative, but this word has so morphed in meaning that he can no longer call himself that in good conscience. Guy has no political aspirations. He speaks only for himself.
This entry was posted in Economic policy, Economics, News, Politics, Presidential rhetoric. Bookmark the permalink.

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