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Keynesian Economics

The Big Idea for Tuesday, January 08, 2013

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
    Daniel Altman Econ201
  2. 2 Keynesian Economics Will Be Dead
    Peter Thiel
  3. 3 The Future of Debt, Interest Rates, and Taxes
    Glenn Hubbard
  4. 4 Paul Krugman on Spending
    Paul Krugman

Keynesian Economics

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