Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Historical patterns suggest that Keynesianism is the last tool governments reach for when in social emergencies, such as the financial crash following Lehman Bros. Keynsianism is then practiced, grudgingly, minimally, half-heartedly. It saves the day and yet as soon as it is put into action the usual chorus of howls from the rentier class sabotages the policy by moaning about the trade deficit or national debt, so as soon as possible the policy is abrogated and we go back to predatory capitalism-as-usual.

The social and economic results are unmistakably positive, yet the bulk of the spending has been to the military, or equally stupid short-term myopics such as saving GM (without insisting they switch to turbine rotor making and all-electric transport).

That same money if dedicated to wifi broadband rollout, better public transport and a marshall plan for renewables would have done much more than it did to encourage employment and prosperity, even at the stingy, minimalist, half-throated levels it was given.

The more I think about it, it seems as big a no-brainer as acknowledging the earth rotates around the sun, (the resistance to its acceptance is at least as robust), and will one day this resistance will seem equally absurdly illogical (as well as a massive conflict of interest).

The repellent method in which fiat money is created can only be condoned and redeemed by social democracy implementing government counter-cyclic spending to keep unemployment from getting too high, otherwise wealth is increasingly sucked into the maw of high finance and away from welfare services, pensions, and credit/loans to small and medium sized business.

Otherwise it's Wall Streets and Walmarts all the way down...

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty

by melo (melometa4(at)gmail.com) on Tue Jun 3rd, 2014 at 03:44:43 PM EST

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