The Keynesian model is not a “big government” model

posted by
May 4, 2016
by Scott Sumner  
Posted in Commentary

"Before getting into this post, let me remind you of previous pointless debates, such as whether 'Islam' is 'really' a this or that sort of religion. I hope my readers can see the pointlessness of those debates. Similarly, I do understand that many Keynesians, and also many anti-Keynesians, think that Keynesianism is a sort of big government ideology, at least when compared to new classical economics, monetarism, Austrianism, etc. So there is a sense in which the title of this post is wrong. If Keynesians act as if their model has big government implications, then in a sense it does. So what do I mean by the title of the post? I mean that the technical aspects of the model have no big government implications, and that people who claim otherwise are simply using bad logic." (05/04/16)  

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  • dL

    economic growth is the big government model. It is undeniable that capitalism spawns a sprawling bureaucracy. Whether the regime is keynes or chicago or whatever, the government grows w/ the economy…

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