re: #136 Dark_Falcon

What I think he means is that there are places in the Western world like Greece where the Keynes model no longer works because thew economy is fundamentally unsound. In those places, the economic foundations must be shored up by reducing spending. Only after Greece brings order to budget and lives within its means will Keyensian management work.

My point is that Keynes’ model is not so simple as “Spend more”. The general theory doesn’t contradict the notion that it’s possible (and common) for governments to spend themselves into oblivion. The math people use to attempt to show that our economy is in trouble due to expansion of the public sector is based on Keynes’ work.

The anti-Keynesian talking points we have been seeing so much of lately are completely off the mark. It’s really about as dumb as arguing that Newton was wrong. I can respect an argument that uses the general theory to show why a government should spend less. An argument that the general theory is wrong is, however, doomed to be based on simplistic misunderstandings of economics.