I’d only support Keynesians if they had the data to back their shit up.
Wage/price stickiness is very accurate and it does exist.
However, the crux of the Keynesian solution is increased government spending (along with loose monetary policy, which is another post altogether).
The Keynesian multiplier needs to be ridiculously high (I remember reading Cochrane saying it needed to be 5 for a meaningful stimulus right now) which no one has proven nor does any historical data show that stimulus “sparks” the economy into life.
In fact, most Keynesians cry foul when the government stops spending money - look at World War II and all the economists who said the economy would tank because no one spends money.
Long-run growth is what needs to be focused on. That means no high deficits, decreased gov’t spending (so we don’t crowd out productive investment) and stuff like that.
So yeah, Keynesians have a few good insights, but mostly bad solutions.
Keynes, in his own preface for General Theory, admits that the most efficient way for his theory to be executed is for it to function within a totalitarian state…
People should have gotten as far as the preface and thrown the book in the trash.
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