Quite an article…
“Macroeconomics has returned to the discredited Treasury view with some modern embellishments (Ricardian equivalence etc). The major attacks on the of government fiscal stimulus to conquer unemployment now resonate almost exactly with the bunk that was trotted out by the conservatives during the 1929 British election campaign. The modern proponents (centred at Harvard and Chicago) also appear largely unaware of the arguments and seem content to peddle their nonsense oblivious that their “knowledge” ceased to be such 80 odd years ago.
“It isn’t rocket science to understand what has happened. The “budget cuts have impaired the economy’s ability to grow”. You simply cannot withdraw (drastically) the main source of spending and not expect output to fall (dramatically).”
Bill Mitchell, We can conquer unemployment – billy blog…alternative economic thinking