Mark Divy

The Problems with Brad DeLong's Keynesian Stimulus Proposals

The problem is that we have never really applied the teachings of Keynes. His basic belief was to build up a "rainy day" account during good times, and then apply that as stimulus during bad times. With such a large amount of debt, we have never really been in a position to apply this model to our economy. I doubt that he would have thought that stimulus spending as debt that is likey never repaid, and just added to the last recovery cost - would apply to his economic thought.

Got to pay off the debt, and maintain some surplus cash to use Keynesian economics. China remains the only actual example of Keynes theories.