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Originally Posted by Cali Coug
Keynesian economics, my friend.
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John Maynard Keynes
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Organized public works, at home and abroad, may be the right cure for a chronic tendency to a deficiency of effective demand. But they are not capable of sufficiently rapid organization (and above all cannot be reversed or undone at a later date), to be the most serviceable instrument for the prevention of the trade cycle.
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I think legitimate arguments for fiscal stimulus can be made. It seems we need both fiscal and monitory policy right now. But once spending on new bureaucracy begins, it can never be deflated. Two years out, any newly created bureaucracy or inflated agencies will need another funding source.
If the WH wants to underwrite a generation of social programs it should be done in a different bill.