Sunday, December 9, 2012
Deck the Halls with Macro Follies: When Economics is Reduced to Farce
... In this video, which, I admit, has some value as humour, though not anywhere near as much as the earlier Keynes versus Hayek song. The trouble is that the producers think they are making some serious points against Keynesianism, when all they do is attack a caricature of it.
Despite what is said, consumption is part of a healthy, expanding economy, but Keynesianism has always been concerned with private investment. As I have said, the major Keynesian method to restore the health of an economy historically has been stimulus programs that take the form of public infrastructure/public investment.