If much of the unemployment is related to the business cycle — caused by a lack of adequate demand — the Fed can act to reduce it without touching off inflation.
Nobel Prizes don't carry as much weight as they used to. If so, how does Obama get one when he hadn't done anything yet? I suspect the Nobel Prize has been politicized. Sure, there are too much politics being played in Washington these days, but, with a statement like the above one, couldn't there be just some concern that it isn't the right way to go right now?
I get the impression the Keynesians want to fight the last war. Not that I am an expert on the Great Depression or anything, but was the Great Depression caused by too much debt? I think not. I could be wrong, but I don't think the level of debt during the Great Depression and prior to it was anything like what we have now.
If his nomination is being blocked, it may well be because of his Keynesianism. It may not even be political, but that is how it is being perceived.
How can someone who advocates greater spending even in the face of what we've already seen- how can that individual be taken seriously? Only those who have this religious faith in government intervention can push this guy forward. We've seen enough government intervention- what we haven't seen is results. Time to look for different ideas.
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