Even The Guardian doesn\’t believe in Keynesianism

Not in the news pages at least:

North Korean rainstorms return, causing 31 deaths

Flooding in many parts of the country deal blow to leader Kim Jong-un\’s efforts to repair moribund economy

But, but, building and rebuilding infrastructure produces a vital boost in aggregate demand! Just what a moribund economy requires. Isn\’t it?

Or does the macroeconomic effect of flinging concrete around depend upon the slant of ones\’ eyes?

5 thoughts on “Even The Guardian doesn\’t believe in Keynesianism”

  1. The Guardian’s story speaks of destruction of crops and damage to coal mines. Keynes would have been against those things.

    In a command economy, concrete is flung to the extent determined by the commanders; Keynesian demand management is irrelevant.

  2. Aye. North Korea is poor because it has no productive capacity (due to brutal lunacy, trade isolation and no rule of law), so the question of whether weak demand means that the economy is behind its production frontier would be almost entirely moot even if that question wasn’t made irrelevant by the fact that it’s a command economy.

  3. With the greatest of respect, do you think that in your views on Keynes you are becoming a little like Inspector Dreyfus in the Pink Panther films?

    Now there were legitimate reasons for Dreyfus to think lowly of Clouseau, but remember where he ended up.

  4. It’s not Keynes, himself, flawed though he was. It is the modern disciples of “partial Keynesianism”.

    Partial because they’ll follow his precepts whilst times are bad but happily and maliciously flout them when things are going better.

  5. John, Paul, Luke and SurE have a point. (Although Keynes did only half-jokingly advocate burying money in coal mines as a way to generate work, John.)

    Command economies indeed have little to do with the problem of competing price-responsive firms in a recession lowering real prices faster than trade unions can lower real wages. As SurE says, economic illiteracy among writers and readers at the Guardian largely come from the neo-Keynesians.

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