Thomas Del Beccaro Why Aren’t the Democrats Keynesian on Taxes? Thomas Del Beccaro, Big Government

Here's a shocker - Even Keynes thought that lower tax rates would be better than tax hikes to stimulate the economy. But everybody seems to be missing this...

So why do Democrats, so enthusiastic about Keynsian economics, skip the parts that actually work?

President Obama has used Big Government to its fullest extent to turn the economy around.  Economic and job recovery was promised if we passed the “Stimulus” bill, Obamacare and support such policies as funding Solyndra.  Despite a lack luster economy and record long 8+% unemployment, the President and his supporters continue to tout a government led economy in their modern version of Keynsian economics.

But is that really what Keynes believed?  In a word: No.

It is true that Keynes believed that government intervention in the economy could be beneficial.  Government spending was part of several tools he thought the government could use to ensure economic growth and stability.  In that sense, Keynes believed that government could prime the economic pump.  The President and leading Democrats, however, believe that government should be the economic pump.

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Keynes so believed that that he also said that: “For to take the opposite view today is to resemble a manufacturer who, running at a loss, decides to raise his price, and when his declining sales increase the loss, wrapping himself in the rectitude of plain arithmetic, decides that prudence requires him to raise the price still more–and who, when at last his account is balanced with nought on both sides, is still found righteously declaring that it would have been the act of a gambler to reduce the price when you were already making a loss.”

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