Sunday, December 14, 2008

Keynes to the rescue...again. Out of the wilderness and into our hearts.

I've said it for a time now that we get out of our economic mess through government spending on infrastructure.

The New York Times offers a story about how the last time we faced such a big crisis and what economist got us out of it.

I love it that the laissez-faire types were all down on Keynes before the market meltdown, but now it's Keynsian policies we need to cure their profligacy.

Keynes had it right when he said government must step in and spend in order to overcome banks' and the public's fears about spending liquid assets (cash).

Now, it seems the old is once again new....the worm turns.

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