Posner’s Coming Out Party

Michael Williams — Thu, 24 Sep 2009 14:11:36 +0000

I suspected this after reading his most recent book, but Judge Posner made it official in The New Republic: he’s a Keynesian.

-Michael

Update: One economist responds.

The Problem With Keynesian Economics and Spending Cuts

Michael Williams — Sat, 19 Sep 2009 16:10:39 +0000

Right now, our government is running a massive deficit. No problem, say Keynesians: we’re supposed to run deficits during economic contractions and surpluses during expansions. Trouble is, it’s hard to kill a deficit (at least without raising taxes) without cutting spending.

Bruce Bartlett has a great article out right now explaining why spending cuts are almost impossible. That $7.5 trillion is going to come from increased taxes, whether we like it or not.

Update: Judge Posner and economist Gary Becker on why deficits matter.

-Michael

The View From LL2 » keynes

Posner’s Coming Out Party

The Problem With Keynesian Economics and Spending Cuts