Larry, let's talk. https://twitter.com/JStein_WaPo/status/1319317535435665409
It is a mistake to think of The General Theory as a set of policy prescriptions. There are some in there, of course. Among other things, Keynes called for "a somewhat comprehensive socialisation of investment." (british spelling, folks -- i know where the z is)
The General Theory is a book about the relationship between the government and society, and what a monetary economy *is.* The key lesson is not about taxes or spending or deficits.
In The General Theory, Keynes shows that public action is a necessary part of the maintenance of any economy that makes use of money. Prosperity is not hard-wired into the economic fabric of reality. It has to be directed by political leadership.
Tax cuts, spending increases, public ownership -- these must all be part of the policy mix, depending on the situation. There is no magic formula for all places and all times. But we cannot subscribe to a world in which there is an economic life outside of public action.
But whatever that mix might be, it is essential to understand that Keynes believed The General Theory destroyed "one of the chief social justifications of great inequality of wealth."
A little inequality was not so bad, Keynes argued, but the extreme levels that existed in 1936 could not be defended. Today, under every respectable metric, inequality is much worse.
In short, Keynes understood The General Theory as an attack on the idea that economic inequality was a route to social prosperity.
Keynes was concerned not merely with growth and productivity but with the great social problems of his day. In our own moment, his ideas are most relevant to inequality, the rise of authoritarianism and perhaps climate change.
If you want to invoke Keynes to justify a particular policy idea, go for it. But please take the time to understand the nature of the ghost you are conjuring.
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