In addition to making the United States a global laughing stock, last month's dismaying political circus over what used to be routine legislation to increase the debt ceiling solidified the “let them eat cake” politics among the courtiers and plutocrats calling the shots from behind the curtains in the hall of mirrors that is Versailles on the Potomac. The general view is that there is nothing that can be done help the American people economically — at least some of the people — and those in trouble must tough it out on their own. Of course the funding for the perpetual war on terror will continue, and money will continue to flow to the welfare queens in the Military – Industrial – Congressional Complex, although perhaps at a slower rate in the short term, not mention the continued subsidies flowing to the banksters, agribusiness, big pharma, etc.
One outcome is out in the open, however: Obama may talk about jobs, but a fiscal policy designed to put common folk back to work is a non starter.
Joseph Stiglitz is perhaps the most erudite exponent of fiscal policy among the mainstream economists. To be sure, in this age of name-calling, he would be labeled as being left of center, or perhaps branded as a dreaded progressive, or even worse, a hated lefty socialist, but no one (irrational nut cases excepted) would call him a whacko.
In the op-ed below, he makes the clearest and most concise argument for an activist fiscal policy that I have yet read. Even readers viscerally disposed to hate the Keynes' theory of fiscal policy make an effort to deconstruct his arguments, to see if they have the intellectual wherewithal to refute his points without resorting to name-calling.
[note: I reformatted the op-ed slightly to highlight his main points, but did not change any text — readers will find original version at the link.]
Chuck Spinney
Sanary sur Mer, France
Published on Thursday, September 8, 2011 by Politico.com
How to Put America Back to Work
Click on headline to read original. Safety copy preserving reformats by Chuck Spinney below the line.
Continue reading “Chuck Spinney: Joseph Stiglitz on Needed Fiscal Policy”
