The Return to Keynesian Economics

John Maynard Keynes was a British economist whose ideas, called Keynesian economics, had a major impact on modern economic and political theory as well as on many governments' fiscal policies. He advocated interventionist government policy, by which the government would use fiscal and monetary measures to mitigate the adverse effects of economic recessions, depressions and booms.

A return to Keynesian is exemplified by all the bailouts that governments around the world are doing especially British and US governments.

I am in the camp with monetarist Milton Friedman. He and other monetarists have consequently argued that Keynesian economics can result in stagflation, the combination of low growth and high inflation that developed economies suffered in the early 1970s.

We, me and Milton, argue that the central government cannot micromanage the economy. People figure out what the government is doing and shift their behavior to neutralize the impact of policies.

Obama advocates a return to Big Government, Big Tax bills resulting in fewer and smaller businesses. Even worse, accelerated government spending.

His election will likely create a longer recession with inflation.

Regan was, and still is right. The government is the problem not the solution.

John- I believe what I heard at last night's debate was the following from Obama:

1. Obama said he would like to audit, line by line, each program within the government and throw out the poor performers, keeping only the programs that were valuable and made sense. Money savings in the elimination of useless programs.
2. Taxes on people and small businesses making less than $250,000 per year, will see no tax increases. He further proposes that if a small business owner wants to supply their employees with health care benefits, he will give them a credit for doing so to help them afford the programs given to said employees.
3. As to your comment concerning "accelerated government spending"- please explain how your Republican President(and Republican controlled Congress for 6 years) doesn't hestitate to ask for billions to afford his war, asks for the bailout package to the tune of $730 billion plus $140 billion for pork and asks for $25 billion to bail out the automakers. Isn't this "accelerated government spending" at it's finest? It happens in both parties. Wouldn't you agree? If so, why do you continually reference only Obama and the Democrats? How about equal time for the Republicans? It is both parties in Washington that are to blame, don't you think? Your comment about Reagen saying government is the problem. So true. When he busted the air traffic controllers union in the 80's, it was the start of the downfall of workers rights in the workplace. His governmental intrusion certainly created permanent problems for the working man to this day.

Like it or not, the Republicans are just a guilty for our unbalanced budget than the democrats. Spend, spend, spend, get used to it. Its in our future until the next Regan Revolution.

Ok as a business owner, what do you expect? It takes me hundreds of hours just to process all the taxes perpetrated upon my business, my employees and my assets.