The dangers of being wrong on Keynes

The dangers of being wrong on Keynes – The Washington Post.

“Prior planning, it turns out, is important. Keynesianism may be a theory of crises, but it requires planning during non-crisis periods. And looking back, we weren’t prepared to go Keynesian. At all.”

They forgot that Keynesianism requires countries to save during good times and to spend during bad. We didn’t do the first and didn’t consider the consequences of adding unsustainable debt if the stimulus spending (i.e. investment) failed.

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