Hard Keynesianism is Hard

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Paul Krugman:

If you’re a serious Keynesian, you’re for maintaining and even increasing spending when the economy is depressed, even though revenue has plunged; but you’re for fiscal restraint when the economy is booming, even though revenue has increased.

In other words, you want to (roughly) balance the budget over the course of an economic cycle, running a surplus during the expansionary phase and a deficit during the recessionary phase.

Obviously there are technical disputes about whether this is the right way to manage the macroeconomy. But in a way, it hardly matters. In the same way that real Christianity is simply too hard for mere mortals to practice (thus the need for a merciful God), so is hard Keynesianism. In the real world, you’re just never going to be able to persuade people to demonstrate the fiscal restraint that Keynesianism requires during boom times. And if, in the real world, Keynesianism is too difficult for human beings to practice during the 80% of the economic cycle taken up by expansion, then it’s not much good. Economics, after all, doesn’t feature a notably merciful God.

I don’t know if anyone has ever proposed a feasible way to overcome this problem.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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