re: #123 Killgore Trout

I’m also seeing a lot of talk for conservatives these days that Keynesian economics has failed and is now dead. That’s like claiming gravity no longer applies. It’s insanity.

Keynsian economy is based on the notion that even a sound economy has periods of contraction, and the government has an interest in intervening to ease the social effects of the business cycle.

Problem right now is that the economy is so broken that the Keynian model is hardly applicable. The collapse of Greece and the near collapse of the euro showed that.

Europe is faced with the unpleasant necessity of consolidating and cutting government spending so that the overall economy remains stable enough for Keynian principles to become applicable again.