January 8

Power and Influence

Tuesday’s Big Idea

Keynesian Economics

What should the role of government intervention be for the U.S. economy? The two major political parties in the U.S. have drastically different views on this question, largely based on ideological differences. 

In today's lesson, however, Big Think Chief Economist Daniel Altman argues that current conditions -- nearly the lowest fixed borrowing rate ever -- should dictate policy, not ideology. In addition, the current state of public infrastructure, which Altman calls "deplorable," needs to be fixed in order not to hold back the growth of the economy. Low interest rates offer the perfect opportunity to fix this problem, Altman says. 

But where does the money come from?

"Even if the result of the new spending were an increase of just over 0.1 percent per year in GDP," Altman points out, "starting a decade from now, the borrowing would pay for itself."

Read Altman's argument here

  1. 1 More Spending That Pays for Itself
  2. 2 Keynesian Economics Will Be Dead
  3. 3 The Future of Debt, Interest Rate...
  4. 4 Paul Krugman on Spending
   
  1. More Spending That Pays for Itself

    More Spending That Pays for Itself

    While the Congress debates sequestration and other ways of trimming spending in specific departments and agencies, it should not miss the tremendous opportunity now presented by the financial markets.

    Read More…
  2. Keynesian Economics Will Be Dead

    Keynesian Economics Will Be Dead

    Peter Thiel sees John Maynard Keynes as his economic villain. He explains why the current financial crisis was caused by short-run thinking.

    Read More…
  3. The Future of Debt, Interest Rates, and Taxes

    The Future of Debt, Interest Rates, and Taxes

    The Columbia Business School dean to President Obama: "Focus on getting that long-term deficit down."

    Read More…
  4. Paul Krugman on Spending

    Paul Krugman on Spending

    Krugman describes how we did it in WWI and why we can do it now, even with massive deficits.

    Read More…