At 18/09/2001 04:41, Max wrote:
>As a close observer of the U.S. fiscal policy
>debates, I'd like to chime in that military
>spending is certainly in the cards, but no
>support for deficit spending is anywhere in
>sight. Don't forget that Bush's $40B comes
>out of a residual surplus of $150B, though
>obviously the latter number will be lower
>before the year is over.
>
>The shortcomings of Keynesian policy after
>1973 may be overstated. Mark's argument here
>is a close echo of the conservative critique,
>against which there is counter-evidence. His
>claims for effective Keynesian 'fine-tuning'
>prior to 1973 are also debatable.
I'm sure you're right and Michael is right, that defence spending has few
wider economic effects these days, altho that might conceivably change, if
conscription is brought back for example. I also think you are right about
pre-1973: things were never so black and white. Nevertheless, there was a
sea-change in 1973-74.
Is Bush really against deficit spending?
Mark
