Thursday, July 01, 2010

Mr. Keynes' Theory

"Take your medicine" said the wise men.
"But it's bitter" we said.
"Bitter and painful to swallow."
"Yes," said the wise men.
"It has to be bitter so that you
know that you are being punished."
"For the sins of whom are we being punished?"
We asked. The wise men did not answer.

Austerity is all the rage. Europe and the G 20 have proclaimed it. Whose ass is it that must be saved thereby? Bankers, I guess - especially German bankers maybe or maybe bankers everywhere.

Paul Krugman and Brad DeLong are not quite lonely voices crying in the desert against it, but they are definitely in the minority. The lessons of Keynesian economics are being ignored they argue.