Thursday , August 11 2022
Home / Mike Norman Economics / Barry Ritholtz — Born-Again Fiscal Hawks Turn Into Doves

Barry Ritholtz — Born-Again Fiscal Hawks Turn Into Doves

Summary:
Funny how some folks stop caring about federal deficits after an election.… This sort of behavior is intellectually dishonest, hypocritical, economically counterproductive and, at times, even dangerous. It has been going on for too long.... But Ronald Reagan (and you thought I was referring to Barack Obama) ignored the critics. His deficit spending and tax cuts helped stimulate the economy and led to an economic recovery that lasted for the better part of a decade. 1 This is further support for the playbook laid out by John Maynard Keynes in "A Treatise on Money," written almost 90 years ago: The government acts temporarily to replace missing corporate and household demand during recessions by increasing spending. Both Reagan and Obama had the big concept right; the time for stimulus

Topics:
Mike Norman considers the following as important: , ,

This could be interesting, too:

Mike Norman writes Lars P. Syll — On the non-neutrality of money

Mike Norman writes Uncertainty — Brian Romanchuk

Mike Norman writes Why Keynes was a socialist — Andrew Jackson

Mike Norman writes ‘Fridays for Keynesianism’ — Peter Bofinger

Funny how some folks stop caring about federal deficits after an election.…
This sort of behavior is intellectually dishonest, hypocritical, economically counterproductive and, at times, even dangerous. It has been going on for too long....
But Ronald Reagan (and you thought I was referring to Barack Obama) ignored the critics. His deficit spending and tax cuts helped stimulate the economy and led to an economic recovery that lasted for the better part of a decade. 1
This is further support for the playbook laid out by John Maynard Keynes in "A Treatise on Money," written almost 90 years ago: The government acts temporarily to replace missing corporate and household demand during recessions by increasing spending.
Both Reagan and Obama had the big concept right; the time for stimulus through the combination of deficits and tax cuts is during a bad downturn. When private-sector demand crashes, the government can replace it temporarily with the proper programs....
Bloomberg View
Born-Again Fiscal Hawks Turn Into Doves
Barry Ritholtz
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

Leave a Reply

Your email address will not be published. Required fields are marked *