The View From 1776
The Daily Socialist - 7/20/10
Is there a case for Keynes’s “liquidity trap?”
Keynes believed, and apparently Paul Krugman agrees, that failure of individuals and businesses to spend all their cash during a recession is bad, that government must intervene with large-scale deficit spending. Individuals’ and private businesses’ failure to spend is what Keynes damned as saving. Oddly, he also identified government deficit spending as savings, or what Democrat/Socialists call investment.
Posted by .(JavaScript must be enabled to view this email address) on 07/27 at 12:21 AM
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