tag:blogger.com,1999:blog-7863581843088370950.post5713658535711427916..comments2024-03-09T02:19:45.780-05:00Comments on BlawgConomics: A Six Point Job Plan Leaves Questions UnansweredJosh Sturtevanthttp://www.blogger.com/profile/00080334341099916281noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7863581843088370950.post-57765544012271786982011-07-15T08:16:58.467-04:002011-07-15T08:16:58.467-04:00Hi,
Thanks for the comments, all valid ones in m...Hi, <br /><br />Thanks for the comments, all valid ones in my mind. Reich may be the last Keynesian standing right now, but it wasn't so long ago that presidents representing both parties were pushing through massive spending programs in the name of recapturing lost growth. Maybe as someone with no horse left in the political arena, he is just saying what many, particularly among Democrats, are still thinking but afraid to say aloud as the winds are turning against spending as a panacea. <br /><br />I agree with your comment regarding Keynes on voter psychology. If he did consider voter sentiment (I have not read anything to suggest that he did or didn't) he at the very least misjudged how fickle the masses can be when the economy is in rough shape. It is clear that the tide has turned in the direction of austerity...but maybe people needed to see spending not working before bad-tasting medicine could become acceptable and even desired.<br /><br />JSJosh Sturtevantnoreply@blogger.comtag:blogger.com,1999:blog-7863581843088370950.post-54338705254648558272011-07-14T12:26:13.158-04:002011-07-14T12:26:13.158-04:00I strenuously disagree with extending unemployment...I strenuously disagree with extending unemployment insurance. Just as foreclosures will ultimately end the dire situation of under-water mortgages, desperation will be what forces job seekers into productive but less-than-desired jobs. I do support expansion, temporary or permanent, of programs like Aid to Families with Dependent Children, because I'm not a heartless monster.<br /><br />And as to national debt, clearly Reich is the last Keynesian standing. I happen to agree with him that this is the wrong time to cut government spending & borrowing. Gov't spending is an economically inefficient but highly effective way to create jobs, which are desperately needed.<br /><br />However, the national debt needs to be tackled, and the country appears ready to stomach it. Perhaps because voters are tightening their own belts, they want the gov't to tighten its, as well. I'm beginning to think that Keynes underestimated the role of voter psyche when suggesting that democracies spend in recessions and pay off debt in the flush years.Anonymousnoreply@blogger.com