More than 70 years after the ideas of a British economist were used to justify a huge expansion in the government’s role in the economy, John Maynard Keynes is back.
Almost everyone today agrees that a big fiscal stimulus is just what the doctor ordered to lift the U.S. economy out of what is fast becoming the worst slump since the Great Depression. The few remaining limited-government types are hunkered down at Washington’s Cato Institute. The only questions for the Obama administration are the size of the package anywhere from $500 billion to $1 trillion and its composition infrastructure, tax cuts, transfers to the states, “green” jobs.
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