Honestly I doubt anyone ever really did believe in Keynes and his theory of spending your way out of debt and into prosperity, but it was a convenient tool big government types could use to promote their programs and sucker people into allowing them to move forward with terrible ideas. Those ideas were not about what they claimed to be; they were more about buying votes and changing the social landscape than in producing a better economic outlook.
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Keynes theory has never been tried, so we don't know if it would work or not. The theory was that we would incur government debt during bad times, and then when times were good we would pay that debt off in it's entirety. We have never paid off debt, but have just continued incurring more and more debt, in good times as well as bad times.
Posted by: Bill H at December 30, 2025 12:42 AM (FRG6e)
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So what you're saying is that we are actually trying Keynsian Theory, whether we're calling it that or not.
Posted by: Dana Mathewson at December 30, 2025 01:08 AM (fJC/c)
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Actually Bill there are times we paid off at least some of the debt and yet debt growth outpaced economic growth. In the end it is human nature to not pay back what one owes if you can get away with it.
Many Keynsians have complained over the years that we just havn't spent enough to make his theory work. Imagine that.
His theory was the true voodoo economics; this notion that government spending will "prime the pump" and get people spending more money is purest sophistry as it takes money away from the productive and gives it to the politically connected. Even when printing the money to spend it you take money from the productive through inflation. His was always just magical thinking, that you can get something for nohing. He vonfused money with wealth.
Posted by: Timothy Birdnow at December 30, 2025 08:17 AM (OaSl3)