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Keynesian Economics

Can Democrats Get an Unemployment Extension Deal Without Throwing John Maynard Keynes Under a Bus?

Sheri and Allan Rivlin | Posted 05.25.2011 | Politics
Sheri and Allan Rivlin

Right now a Bill to extend unemployment benefits another six months is being held hostage in the Senate due to an ideological struggle between followe...

Newt, the Tea Party Is Already the Militant Arm of the GOP

Stephen Herrington | Posted 05.25.2011 | Politics
Stephen Herrington

Newt Gingrich prophesies that the Tea Party will become the militant arm of the GOP. I've got news for Newt: it already is.

What Happened to the Middle Class?

Nathan Lewis | Posted 05.25.2011 | Business
Nathan Lewis

The U.S. middle class's path of success ended precisely when the gold standard currency system was replaced by the floating-currency system in 1971. Prosperity is built on the foundation of a stable currency.

Why We Are Moving Toward a Recessionary Era, and Why Keynes is Being Exhumed

Robert Reich | Posted 05.25.2011 | Business
Robert Reich

John Maynard Keynes is being exhumed because his Depression-era worry about inadequate demand is once again the nation's central economic problem.

Time to Plan for a Post-Keynesian Era

Jeffrey Sachs | Posted 05.25.2011 | Business
Jeffrey Sachs

We need to reset our macroeconomic timetables. There are no short-term miracles, only the threat of more bubbles if we pursue economic illusions. The watchword must be investment rather than stimulus.

The Coming Keynesian Catastrophe

Nathan Lewis | Posted 05.25.2011 | Business
Nathan Lewis

"Stimulus" is a great cover story for old-fashioned patronage and graft.

Why Is Washington Dithering With Unemployment High?

Yves Smith | Posted 05.25.2011 | Business
Yves Smith

Today, the unemployment rate is kissing 10 percent. Yet, unlike 1983, there is no sense of urgency in Washington.

Larry Summers, Obama's Top Economic Adviser, Makes The Case For Another Round Of Stimulus Spending

Huffington Post | Ryan McCarthy | Posted 05.25.2011 | Business

In a speech yesterday at Johns Hopkins University, Larry Summers, President Obama's top economic adviser, made the case for increased spending to stim...

DK Matai | Posted 05.25.2011 | Business
DK Matai

Editor's Note: This post has been removed from the Huffington Post....

Who Is John Galt? No, Really.

Stephen Herrington | Posted 05.25.2011 | Politics
Stephen Herrington

John Galt's "rational self-interest" is a fantasy. Tea Partiers and Libertarians need to reconcile with this fact, but it will require far more thought than they have customarily been willing to spare.

The "Madoff" Plan for Government Finance

Stephen Herrington | Posted 05.25.2011 | Business
Stephen Herrington

Bernie Madoff was not that smart, only ruthless. He, like our global finance system, adapted to conditions as they presented themselves. After all, a Ponzi scheme is not a plan. It will always fail.

In the Century of "Black Swans", Modern Economics Deserves "Creative Destruction"

Dr. Vladimir A. Masch | Posted 05.25.2011 | Business
Dr. Vladimir A. Masch

Neoclassical economics must be replaced. Nobody can predict now the full scale of its radical replacement, and how beneficial would that replacement become, but its absence will surely be a tragedy.

A House Divided

Stephen Herrington | Posted 05.25.2011 | Business
Stephen Herrington

We have sunk too far and can't afford to open the spigots wider without recreating the same over leveraging problems that created the Great Recession.

James Galbraith: Jobs, Not Deficit Reduction, Is Policy Focus | James K. Galbraith | Posted 05.25.2011 | Business

"Growth," James Galbraith writes in The Guardian, "is not assured; it cannot be assumed; and it is not even the highest priority." Instead, he says, "...

Keynesian Economics Dissected: Deficits and John Maynard Keynes

Sheldon Filger | Posted 05.25.2011 | Business
Sheldon Filger

What is left out of the description of his theory in regards to counter-cyclical fiscal policy, is that Keynes also believed that in times of relative prosperity sovereigns should create budget surpluses.

Note to Fareed Zakaria: Tax Rates Affect Behavior

Michael Pento | Posted 05.25.2011 | Politics
Michael Pento

Brace yourself Keynesians: a drop in revenue from an economic slowdown should be met with a commensurate cut in government spending.

The Problem With the Euro

Nathan Lewis | Posted 05.25.2011 | World
Nathan Lewis

The European Central Bank has to learn how to make its money stable by using direct adjustment of base money supply.

Layoffs Are Bad for Business and the Economy

Stewart Acuff | Posted 05.25.2011 | Politics
Stewart Acuff

An article by Stanford Professor Jeffrey Pfeffer in the February 15 issue of Newsweek makes a compelling, well-researched case that layoffs and downsi...

Tragedy in Greece

Bill Baker | Posted 02.11.2010 | World
Bill Baker

What was once a cradle of civilization now accounts for only 2.6% of European Union output, and the rest of the continent simply can't let its financial system implode just yet.

Keynes Battles Hayek In Economist Rap Battle (VIDEO)

Posted 05.25.2011 | Business

In a new hip-hop video, "Fear the Boom and Bust," an old economics debate about market intervention is translated into a rap battle between two of his...

Trapped In Prisoner's Dilemma, More Stimulus Is The Way Out

David Segal | Posted 05.25.2011 | Politics
David Segal

The stimulus' oft-cited $787 billion figure includes nearly $300 billion in tax cuts, meaning that it represents a split between conservative and interventionist economic philosophy.

Strengthening The Levees Against Unemployment And Rising Debt

Ann Pettifor | Posted 05.25.2011 | Business
Ann Pettifor

Government must manage the federal budget in the same way that you manage your household budget. But in truth, the president must do the opposite.

Corporations, the Government, and Accountability

Mike Lux | Posted 05.25.2011 | Politics
Mike Lux

If government bails you out, subsidizes you, forces people to buy your product, or otherwise does business with you, we the people are owed some basic accountability on the other end of the deal.

Jeffrey Sachs: Obama Failing On Economy

Jeffrey Sachs | Posted 05.25.2011 | Business

The past week brought news of US double-digit unemployment and the Federal Reserve's decision to maintain near-zero interest rates. Both pieces of new...

Risk of Major Social Upheaval Likely if Bank Bonanza Continues

Marshall Auerback | Posted 05.25.2011 | Politics
Marshall Auerback

Is a Democratic administration and a Democratically controlled Congress presiding over one of the most regressive wealth transfers in history?