Democrats and the Death of Keynesian Economics

Tuesday 18 October 2011

by: Michael Corcoran, Truthout | News Analysis 

 

Obama's dead-on-arrival jobs bill, which followed trillions in spending cuts that were made during the debt ceiling controversy, remind us that politicians have stopped seriously trying to save the economy through job creation and government spending. The protests on Wall Street show that the public recognizes that change will only come when the people take matters into their own hands.

It is quite remarkable, given the nature of the recent debate over economic policy in Washington, that a Wikipedia article exists today called, "2008-2009 Keynesian resurgence." Today, both political parties have had an obsession with "austerity measures" for at least last year or so - which includes putting Medicare and Social Security on the chopping block. Barack Obama's weak job bill, which was dead on arrival, only further demonstrates how twisted priorities are in Washington. So, it is actually hard to believe that, in the aftermath of the near-collapse of the economy in 2008, Maynard Keynes, who advocated government intervention in the economy to increase demand during downturns, was making a comeback.