Re:Paul Krugman: The austerity delusion
by mudil on Wednesday April 29, 2015 @02:01PM
(#9460315)
The big Keynesian idea is that somehow gov't can allocate capital better than private businesses. But that patently cannot be true. (I never could understand how Keynesian economics is different from socialism.)
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Not true whatsoever.
Here's the definition as stated by Wikipedia, which I find to be pretty accurate and concise:
> Keynesian economics is the view that in the short run, especially during recessions, economic output is strongly influenced by aggregate demand (total spending in the economy).
This contrasts with the earlier theory that production creates demand.
And while Keynesian economics does suggest that the government should intervene in the economy, it's far from a command economy.