March 1, 2013

Failings of Keynesians

The unwillingness to act, stimulate now by investing in infrastructure, education, research and development, while developing a long term plan to get our debt problem under control, has less to do with economics than communication.

Our prime communicator, the President, has failed on this issue. Further, Keynesian economists, those who believe in a stimulus now and a long term debt reduction plan, have been unable to gain credibility on the need to stimulate because they spend too little time acknowledging the need to harness the expansion of debt in outlying years.

One loses credibility If the general public and those in Congress "feel" we must gain control of spiraling debt caused partially by an aging population and yet 90% of the message they hear from Keynesian's is we need to stimulate now while giving little time to our need and ability to solve the debt issue over a longer term horizon.

As a college professor one can have total command of a given subject, but if one lacks the ability to transfer that wisdom to his students he fails as a teacher. The President and the Keynesians have failed in this quest to educate Congress and the general public.

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