Nothing New Under the Sun

October 10th, 2011 at 1:48 pm

One wants to avoid “distilling their frenzy from some academic scribbler” by re my earlier post, here’s Keynes from 1933 as quoted by John Cassidy here:

“It is a complete mistake to believe that there is a dilemma between schemes for increasing employment and schemes for balancing the Budget.  There is no possibility of balancing the Budget except by increasing the national income, which is much the same thing as increasing employment.”


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3 comments in reply to "Nothing New Under the Sun"

  1. Sandwichman says:


    “‘It is the orthodox Treasury dogma, steadfastly held, that whatever might be the political or social advantages, very little additional employment and no permanent additional employment can, in fact, and as a general rule, be created by state borrowing and state expenditure.’ …Certainly this dogma is not derived from common sense. On the contrary, it is a highly sophisticated theory… But the theory lacks truth as well as plausibility”

  2. Dick Swartley says:

    Here’s how FDR said it in 1936:

    If the national income continues to decline, then the Government cannot run without going into the red. The only way to keep the Government out of the red is to keep the people out of the red. And so we had to balance the budget of the American people be-fore we could balance the budget of the national Government.

    That makes common sense, doesn’t it?

  3. Ed O'Connor says:

    CBO to Super Committee: Full Employment Would Reduce Deficit By A Third