By Jonathan Power
Donald Trump is changing the right wing’s economic spots. He is doing what Franklin Roosevelt did at the time of the Great Depression by increasing government spending – although it was the rearmament brought on by entering World War 2 that was an even more important factor in lifting America out of the doldrums.
He is following what Hitler did so successfully before World War 2 when he rebuilt Germany’s economic strength with autobahns and industrial subsidies (not rearmament in the beginning, as is often said). He is walking in the footsteps of President Richard Nixon who when he changed course with a new economic policy said, “We are all Keynesians now”.
John Maynard Keynes was the greatest economist who ever lived.
For reasons that were shameful, politicians have not listened to his advice as often as they should. The Germans, with their urge to austerity, have gone the other way, carrying (or pushing) nearly every European state with them, apart from Poland and Sweden which did not follow the herd and now have the best economic growth record of the last few years.
But Obama has certainly been Keynesian. Read More »