Get HuskerMax on your iPhone. Click here for details. Get tickets for all home and away games here.
Results 1 to 12 of 12

Thread: Reagan was a Keynesian

  1. #1
    All Big 10

    Join Date
    Jun 2008
    Posts
    18,620

    Reagan was a Keynesian

    The point, then, is that we’d be in much better shape if we were following Reagan-style Keynesianism. Reagan may have preached small government, but in practice he presided over a lot of spending growth — and right now that’s exactly what America needs.
    http://www.nytimes.com/2012/06/08/op...n.html?_r=1&hp

    Under one president, real per capita government spending at that point was 14.4 percent higher than four years previously; under the other, less than half as much, just 6.4 percent.

    O.K., by now many readers have probably figured out the trick here: Reagan, not Obama, was the big spender. While there was a brief burst of government spending early in the Obama administration — mainly for emergency aid programs like unemployment insurance and food stamps — that burst is long past. Indeed, at this point, government spending is falling fast, with real per capita spending falling over the past year at a rate not seen since the demobilization that followed the Korean War.

  2. #2
    God of Huskermax

    Join Date
    Jan 2005
    Location
    Overland Park, KS
    Posts
    58,799
    Reagan was "socialist" before it was evil.

    Nice article.

  3. #3
    All Big 10

    Join Date
    Jun 2008
    Posts
    18,620
    Quote Originally Posted by RedPhoenix View Post
    Reagan was "socialist" before it was evil.

    Nice article.
    I don't consider government spending to be a form of socialism. I reserve that for government control of production.

    But that's a discussion that has been hashed and rehashed many times.

    I'd be interested in digging into whether the nation is really entering debt deflation on the private side. My personal experience is yes, but I don't know if that reflects the general trend.

  4. #4
    Starter
    CornfieldCounty's Avatar
    Join Date
    Sep 2004
    Location
    Phoenix, AZ
    Posts
    12,980
    NYTimes and Paul Krugman say its so!! Bleh

    http://news.investors.com/article/61...-keynesian.htm

    Sorry Krugman, Reagan Was No Keynesian

    "If you actually look at the actual track record of government spending (and) government employment," Krugman said this weekend, "Reagan is the Keynesian and Obama ... has been the anti-Keynesian."

    Well, let's check the actual record.

    Real spending at the end of Reagan's first term was up 9.7% compared with the year before he took office. Under Obama, that figure will be above 16%, according to the White House Office of Management and Budget.

    While spending did top out 23.5% of GDP in 1983, Reagan cut it to 22% the next year, and still lower after that. Under Obama, spending shot up to 25% of GDP in 2009, and it's stayed at or above 24% since.

    Deficits in Reagan's two terms never exceeded 6% of GDP. Under Obama, they've never been under 8%.

    Nor is it true that Reagan added government jobs while Obama cut them. The federal workforce shrank more than 40,000 in Reagan's first term. Obama has boosted federal jobs by 142,000, according to the Bureau of Labor Statistics.

    The only way Krugman can claim otherwise is to lump in postal workers and state and local employees into his calculations. Trouble is, the U.S. Postal Service operates independently and has to cover its own costs — which is why it's been cutting jobs since 1999.

    And presidents have no control over state and local employment, except insofar as their economic policies produce growth to support those jobs — which Reagan's did and Obama's didn't. But apparently it's better to bend the facts than adjust one's faith.

    Some people are born on third base and go through life thinking they hit a triple. - Barry Switzer

    Life is hard
    ; its harder when you're stupid - John Wayne

    Quote Originally Posted by Greatest Fan of All View Post
    I'd be fine with a MAC coach...even Frank (a lesser mistake than Bo). Over Bo? ABSOLUTELY

  5. #5
    God of Huskermax

    Join Date
    Jan 2005
    Location
    Overland Park, KS
    Posts
    58,799
    Quote Originally Posted by cm husker View Post
    I don't consider government spending to be a form of socialism. I reserve that for government control of production.

    But that's a discussion that has been hashed and rehashed many times.

    I'd be interested in digging into whether the nation is really entering debt deflation on the private side. My personal experience is yes, but I don't know if that reflects the general trend.
    I agree I don't consider it socialism either.

  6. #6
    6th year Redshirt
    McJack's Avatar
    Join Date
    Aug 2007
    Location
    Rockin' the Bakken
    Posts
    2,455
    Aside from the comparison to Reagan, I think Keynes is very misunderstood and his theories are grossly mis-applied to current political ideologies.

    Keynes was near-genius in mathematics, and you have to take the bulk of his work in the context of his times. Yes, he favored government spending to stimulate the economy out of the depression and war era to create employment. If you read his books, however, never once did he suggest that was the preferable long term solution, in fact he explicitedly said in his writings that it was a short term fix. He and FDR had many very heated disagreements. They couldn't stand each other.

    Just dusted off "The Means to Prosperity" from the shelf of the home library (dang, haven't looked at this this thing since grad school, still full of yellow highliter pen), some excerpts:

    "Nor should the argument seem strange that taxation may be so high as to defeat its object, and that, given sufficient time to gather the fruits, a reduction of taxation will run a better chance than an increase of balancing the budget"

    "For the increased spending power of the taxpayer will have precisely the same favorable repercusssions as increased spending power due to loan-expenditure"

    True, his models couldn't explain the supply shocks of the 70's. But most economic historians agree that had he been alive at the time he would have adjusted accordingly. His largest theme was full employment, and at times when the market is hesitant, then the government should step in. But at all other times, the private sector should lead the way. He always favored the free market, and only advocated for government stimulus at times of crisis (which was the bulk of his lifetime and writings) to smooth out the demand curves, but he never argued for that type of permanent economic model despite claims by both political parties to this day that those were his intentions.

  7. #7
    All Big 10

    Join Date
    Jun 2008
    Posts
    18,620
    Yep, Keynes was certainly for increased spending by cutting taxes.

    (i.e. tax cuts are functionally the same as spending, because they increase the deficit)

    Those tactics aren't meant to be used in good times, like the cut taxes were in the early 2000s or the spending sprees of the early 90s based on the "peace dividend."

  8. #8
    Oh my!
    Red_in_Blue_Land's Avatar
    Join Date
    Jun 2010
    Location
    West Bloomfield, MI
    Posts
    12,875
    Quote Originally Posted by cm husker View Post
    Yep, Keynes was certainly for increased spending by cutting taxes.

    (i.e. tax cuts are functionally the same as spending, because they increase the deficit)

    Those tactics aren't meant to be used in good times, like the cut taxes were in the early 2000s or the spending sprees of the early 90s based on the "peace dividend."
    "The smallest minority on earth is the individual. Those who deny individual rights cannot claim to be defenders of minorities." Ayn Rand

    "Hillary has been cheated on more than a blind woman playing Scrabble. With gypsies." Dennis Miller

  9. #9
    Husker Immortal
    CombatTargeteer's Avatar
    Join Date
    Dec 2010
    Posts
    117,130
    Quote Originally Posted by cm husker View Post

    I thought he was born in the US??

  10. #10
    Scout Team
    RedRum's Avatar
    Join Date
    Jul 2010
    Location
    Amarillo, TX
    Posts
    3,029
    I think the big question in Krugman's repeated calls for spending, spending, and more spending is he treats all spending as equal. While it is true that spending that stimulates productivity will create positive results, what happens when that spending does not go to productivity? Look what Obama presses in his spending, alternative energy that can not stand on it's own, plugging budget deficits, and social programs.

    This seems to be a far cry from the Keynesian spending that built infrastructure that promoted business, spurred new profitable industries, and made our workforce more productive. I just don't see how the conclusion can be reached that government spending works when the spending isn't the same.

  11. #11
    Quote Originally Posted by cm husker View Post
    So was Milton Freidman...

  12. #12
    Heisman

    Join Date
    Oct 2007
    Location
    McKinney, Texas, United States
    Posts
    11,787
    Quote Originally Posted by CornfieldCounty View Post
    NYTimes and Paul Krugman say its so!! Bleh

    http://news.investors.com/article/61...-keynesian.htm
    That was pretty much my conclusion: "Oh, this is Krugman claiming this - never mind..." Thanks for the well-articulated article of rebuttal from the well-respected Investors Business Daily.







Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •