the.com/keynesianism
the government's credit card exists for exactly one purpose: recessions.
means the economic theory that when private spending collapses, the state should borrow and spend to fill the gap, then pay it back in good times.
from named for john maynard keynes, whose 1936 book the general theory of employment, interest and money argued the great depression was a crisis of demand, not morals, and only government spending could jolt economies out of it.
paradox of thrifteveryone saving at once makes everyone poorer.
multiplier effectone borrowed dollar can generate more than one back.
keynes vs hayekthe rap battle videos have 10+ million views.
never fully repaidthe pay-it-back-in-good-times part usually gets skipped.
for instance
new deal — fdr's 1930s spending spree to fight the depression.
post-war britain — decades of nationalized industry and full-employment policy.
japan lost decade — trillions in stimulus, still stuck in stagnation.