As I was flipping through the radio last night, that’s what I heard on NPR: that all of a sudden, Keynesianism was making a comeback. I know I shouldn’t expect too much from state-sponsored radio, but really, where have they been the last century? The philosophy of deficit spending, government working to stimulate industry, the idea that war is good for the economy–all this has been the default economic position for the vast majority of the political class at least since at least the New Deal. And that includes the alledgedly conservative Reagan administration.
Its ironic also that NPR is only starting to all this at the moment that the failures of the fruits of Keynesianism–massive bailouts, never-ending debt, the Federal Reserve, Fannie Mae and Freddie Mac–are becoming so abundantly obvious to the rest of us.Published in