Below is an excerpt from an excellent piece by Mike Miller, a deficit hawk turned Keynesian. Basically, he says that we need the deficit spending, citing a great quote from the master himself, John Maynard Keynes,
"When the facts change, I change my mind," John Maynard Keynes once growled when grilled about an inconsistency. "What do you do, sir?"
How to love your trillion-dollar deficit - Nov. 20, 2008
All thanks to mindless wars, politicians run amok, and banks gone wild.
"When the facts change, I change my mind," John Maynard Keynes once growled when grilled about an inconsistency. "What do you do, sir?"
How to love your trillion-dollar deficit - Nov. 20, 2008
In ways that 9/11 didn't, today's economic meltdown really does change everything, at least for a few years. Every day brings fresh proof that the credit crunch and the exhaustion of debt-fueled consumer spending threatens to dangerously collapse aggregate demand. There's simply no way to avoid a major recession without the federal government stepping in to bolster demand until we work through the subprime hangover.There's absolutely no doubt in my mind that we'll be seeing HUGE, unforseen 8 years ago deficits.
All thanks to mindless wars, politicians run amok, and banks gone wild.
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