re: #138 Fozzie Bear

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.

I hear you and I understand. I was just trying to point out that it did not seem to me that Ralphieboy was trying to disprove the general theory, he was describing a specific case where Keynes’ recommended policies no longer hold sway because the economy is fundamentally broken. That not true in the US (at least not as whole) nor in Germany, but in places like Greeece and Spain it is true.