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9 thoughts on “American Conservatism Is Keynesian to the Core

  1. No politician – any party – wants to touch that third rail of all things Keynesian. The country will never be led out of the welfare state . . . it must be educated out of it.

  2. Gary North is no conservative. He's a libertarian! Part of the libertarian agenda, part of North's agenda, is to make conservatism more libertarian, that is, more liberal (such as by supporting same-sex marriage). So he attacks conservatism as not being authentic.

    One of the ways North attacks conservatism is by conflating "Republicans" and "conservatives." Since there are big-spending Republicans, North, who calculatingly categorizes Republicans and conservatives as the same, can claim that conservatives are big spenders.

    North backs up that ludicrous claim by falsely accusing conservatives of being Keynesian, that is, favoring economic policies named for the 1930s British economist, John Maynard Keynes. Keynes believed that increased government spending put more money into the economy and therefore stimulated the economy.

    Increased government spending may be "Republican," but does it sound "conservative" to you?

    Among the critical flaws of Keynesianism is the fundamental one of ignoring the source of the government's money. The government can add money to the economy only if it takes money from the economy in some form. It may, therefore, succeed in redistributing that money in the economy, but redistributing money is not the same as adding money.

    Another but simpler and more obvious defect is that Keynesian spending has never really worked in stimulating an economy whenever and wherever it was tried.

    Libertarians are political hybrids of conservatism and liberalism. Liberals have rightly rejected libertarians for fear of their conservatism undermining the liberal agenda. Conservatives have accepted libertarians for their conservative views but naively do not understand that their liberal views adulterate and undermine the conservative agenda.

  3. "Part of the libertarian agenda, part of North's agenda, is to make conservatism more libertarian, that is, more liberal (such as by supporting same-sex marriage)."

    LOL, wrong.

    "Increased government spending may be "Republican," but does it sound "conservative" to you?"

    Yes, I find plenty of conservatives defending Medicare and demanding more military spending.

  4. Conservatives are not Keynesians; apparently the author of this article doesn't have a clue on what Keynesian economics is.
    Keynesians believe that deficit spending will stimulate the economy and as a consequence we use debt as the driver of growth. Look where this stupid idea got us: big debt and no growth. Kennedy is credited with two accomplishments, bringing Keynesian economics to Washington (Harvard dream team) and second, unionizing government employees.

    Conservatives believe in a small budget and small government. Example, Knut Gingrich saw to it that Clinton had three balanced budgets.

  5. You know, I agree with you but there is too much truth in this article to discount it

  6. " apparently the author of this article doesn't have a clue on what Keynesian economics is."

    You are mistaken, he knows exactly what Keynesian economics is.

    "Conservatives believe in a small budget and small government."

    If only that were true.

    " Example, Knut Gingrich saw to it that Clinton had three balanced budgets."

    You commit several fallacies in this sentence. First, you associate "balanced budget" with "small budget" and "small government". They aren't the same thing, so you didn't provide an example of conservatives liking or achieving a small budget or government. The budget and government in 1998 to 2001 were enormous…every single year, there was nothing "small" about them. It could only be "small" if you compare it to the obese Bush/Obama budgets we have now, and that is specious and relative.

    Second, you credit Gingrich for "three" balanced budgets. Gingrich could hardly be called conservative. Unless you mean conservatives are people with slimy ethics that look like ugly trolls. But you defined them as people who believe in small budgets and small government. So in that case, Gingrich is not a conservative.

    Third, it isn't clear how you can credit Gingrich for three. Which years are you referring to? Clinton budgets were in the black even without counting Social Security payments as money for the general fund, but only for the years 1998 to 2001(the outgoing President approves the budget of the incoming President in the first year) approximately. But Gingrich resigned in disgrace in 1998…so he wasn't even around for most of that time! At best you could argue he was responsible for one year, and considering how many unbalanced budgets he worked on and voted for before that, I hardly see how Gingrich was the factor for 1998.

    Now if you are counting years prior to 1998, those are only "balanced" by lumping Social Security revenues in with the general fund, which is fraudulent accounting.

  7. Stuart Shepherd says:

    This article (the entire one) is one of the most fascinating and richest articles I have ever read (and I've read quite a few). It is a textbook unto itself. Thank you.

  8. Keynes is not the problem. The problem is that we've dismantled the intellectual habit of evaluating experimental ideas and when they're disproven, stop doing them. If we had done that, Keynesianism would have died in the 1930s and we'd have moved past a great deal of other nonsense since then. The scammers will always come up with a new scam. Until we improve our scam detection method, we're always going to be in trouble.

  9. Which is what DGN is saying ! ! !