Americans Reject Keynesian Economics (Rasmussen Reports) Feb 05, 2010

fafyrd

Full story found here: Americans Reject Keynesian Economics - Rasmussen Reports



An excerpt:

While influential 20th Century economist John Maynard Keynes would say it’s best to increase deficit spending in tough economic times, only 11% of American adults agree and think the nation needs to increase its deficit spending at this time. A new Rasmussen Reports national telephone survey finds that 70% disagree and say it would be better to cut the deficit.

In fact, 59% think Keynes had it backwards and that increasing the deficit at this time would hurt the economy rather than help.

To help the economy, most Americans (56%) believe that cutting the deficit is the way to go.
Eighty-three percent (83%) of Americans, in fact, say the size of the federal budget deficit is due more to the unwillingness of politicians to cut government spending than to the reluctance of taxpayers to pay more in taxes.

Alistair

In other words, Americans have short term memory loss and forget that non-keynesian economics got us into this whole debacle in the first place.

Singularity

I think this was a key statement in the article, “Given the amount of political chatter about the budget in recent years, it is almost beyond comprehension that neither party has seen fit to highlight the basics so that the American people can make reasoned choices on the fundamental issues before them.”

As I was reading the article, I was thinking the people answering the poll probably have no idea what they are talking about. They just think that they hear on the news how bad the deficit is, but they don't really understand why we have it, how the budget works, etc. It seems like they naively think that they can cut the budget deficit and government spending without raising taxes or losing the things that are paid for through the government spending.

I agree with the quote above. What they should do is show people the budget openly, explain where all the money is going to and where it is coming from. They should explain how different types of changes would affect the American people, their taxes and the budget deficit. Then people will really understand what is going on and they can make intelligent decisions about what to do about things.

fafyrd

Transparency would be a blessing. At least there could be rational and open debate about the budget and its implications. David Walker, former US comptroller and head of the GAO, tried warning Americans of the looming fiscal crisis and went largely ignored although the more that speak out against the budget, the more Americans get educated.

More and more Americans are willing to do without or with less federal government services. I don't think many are that hostile against their state, except for California and a couple others maybe.

Coffee Grinder

It's an unintuitive thing to do. It's called the fallacy of composition. People think what's good for the individual must be good for the whole.
Here is what they think: "If I'm in a tight spot financially what do I do? Obviously I have to work harder and save more money. Therefore the country should work harder and save more money."
They fail to understand that money makes the world go round, and to keep things spinning you need defiicit spending. (in the short term, just to jumpstart demand)

That's why it's unpopular.

Short term deficit spending with long term deficit reduction.

GBer8721

Keynesian economics are what got us here in the first place. By allowing the tax system to get so top heavy and damaging to business more jobs and more money are forced off shore. We need to rip apart the tax code and start over. Have a 5-10% flat tax the EVERYONE pays. Then we should have a national sales tax. So if you are rich and won't to by a bunch of expensive stuff you pay more then people who are not indulging. Deficit spending will never help the economy. It made the Great Depression worse, led to the Lost Decade in Japan and will ultimately lead the US into HUGE trouble in a few years.

napoleon227

I'm sorry, I'm in a pissy mood to begin with, but the survey you quoted doesn't mean jack shit.

First of all, the "average" American knows fuck all about economics and wouldn't know John Maynard Keynes from Michael Caine.

Secondly, the survey is a bit skewed (to be expected from Rasmussen) - if you only ask people if they think it's better to spend money the government doesn't have or to cut spending and stay within projected revenues, of course they are going to side with NOT spending. Duh!

But if you asked them a different question, like who do you think should get laid off first: firemen, policemen, or paramedics, then your conclusions might not be so clear cut. Speaking of "cut" - why don't you go ahead and explain exactly what you think should get "cut" in order to reduce the deficit, in clear detail, and then ask your question about Keynesian Economics.

GBer8721

Explain where you will get the money to pay for all the spending.

Coffee Grinder

It's called "deficit" spending for a reason. You merely borrow the money.
You spend the money and grow the economy by injecting money into the system and pay off the debts in the long run.

GBer8721

Ok, but where is that money coming from. Do you want to cut spending to balance the budget so we can pay the debt off or just tax everyone? The goverment can't make money, just take ours. Clinten did it by cutting well fair.