Keynesian Economics

[TeePee4Prez]

Basically, that the government can serve as a rectifier.

This is it in a nutshell.

Basically, it's infinitely better than the supply-side basis that we gravitated towards in the 1980s.

Agreed, but too much Keynesianism has led to stagflation.  There needs to be a balance.  Sure laissez-faire can lead to growth, but it can also crash in a very ugly manner.

[TeePee4Prez]

Basically, that the government can serve as a rectifier.

This is it in a nutshell.

Basically, it's infinitely better than the supply-side basis that we gravitated towards in the 1980s.

Agreed, but too much Keynesianism has led to stagflation.  There needs to be a balance.  Sure laissez-faire can lead to growth, but it can also crash in a very ugly manner.

There is no reason why Keynesianism should lead to stagflation. Keynesian economics works solely from the demand side, while stagflation is caused by a decrease in short-run aggregate supply from cost-push inflation.

There is no reason why laissez-faire has to crash, as long as it is left apart from government completely.

There is a difference, though. Laissez-faire can be done in by excessive greed, or by people behaving in ways that are not really in their best interest, as witnessed by the subprime crisis. Flyers made an assertion that Keynesianism leads to stagflation, which should be impossible definitionally due to the way that each works.

I was just saying excessive Keynesianism can cause issues like they did in the 1970s with inflation.  Excesses either way causes problems, that's why I'm an economic centrist.  I'm strongly in favor