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Tuesday, July 27, 2010

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 Thomas E. Brewton on 07/27 at 12:21 AM
Economics • (0) Comments
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