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Mendacity:

December 7, 2015

 

Republicans, in general, neo-liberal and supply-side economists reject the Keynesian prescription that during times of insufficient demand (recession and depression) expenditures of public funds even if it results in a governmental deficit is needed to restore the economy to health. Democrats, progressives and Keynesian economists disagree. On the other hand, Republicans, etc., appear quite happy to steadily increase the expenditure on military procurement and benefits and tax benefits for hydrocarbon-based energy production. This has been described as Weaponized Keynesianism and Carbonized Keynesianism.

If there was a third hand, Democrats et al., seem quite happy, during times of insufficient demand to decrease military expenditures and petrochemical public benefits and apply the funds thus saved to governmental welfare schemes.

While I personally prefer the latter, it appears there is an element of hypocrisy on both sides.

We may disagree about whether or not a military dollar gives a greater bang for the buck than a welfare dollar but to some extent we still are agreeing on a Keynesian solution to insufficient demand. The difference seems to be that the Repubs, etc., believe the emergency expenditure should be generally supply side in nature usually including tax relief for equity.

The Dems et al., however, usually propose road, bridge and infrastructure improvements as part of their recession recovery packages (along with middle-class tax relief) and these are also definitely trickle down.

So, it seems to me that it all comes down to a question of politics and not economics. Unless, of course, you consider who ends up with the money is a question of personal destiny and not of social choice.

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