Extracts:
In the case of the neocons, they perceive a genuine problem – a foreign country ruled by a dictator of the sort that we Americans wouldn’t tolerate. The neocons ignore the incredibly complex array of social institutions and cultural mores that allow, perhaps even encourage, the likes of a Qaddaffi or a Hussein to gain and remain in power. That is, the all-important ‘micro’ issues are ignored, enabling the neocons to conclude that if the good guys take out the bad guys, nations once suffering the inexplicable misfortune of being ruled by bad guys will surely turn to their own internal good guys as their leaders. What stands between the people of such tyrannized nations and civil society is simply the bad guys and their henchmen. (Why bother looking more deeply than the brilliantly obvious fact that bad guys are in charge? Can’t you see that that’s the problem??) And those who warn against U.S. military intervention to rid unfortunate nations of their bad guys are blind dreamers; people out of touch with reality. “What do you propose we do?” ask the neocons contemptuously. “Nothing? Ha!”
Similarly with Keynesianism. Keynesians perceive a genuine problem – unemployment. Unemployment is obviously caused by inadequate demand by employers for workers. This inadequate demand for workers, in turn, seems so obviously to be caused by inadequate demand for the goods and services that these employers produce. (Gosh, even fifteen-year-olds can see this fact!) All that stands between workers and full-employment is inadequate aggregate demand. (Why bother looking more deeply than the fact that employers are demanding too few workers and that, if demand for employers’ outputs were higher, employers’ demand for workers will be higher. Can’t you see that that’sthe problem??) So the solution is simple: remove the inadequate demand. Government spending is an oh-so-obvious means of increasing aggregate demand. Increase “G.”
Via Francisco Capella.
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