Keynesian Quotes

It is ironic that Keynesianism originated as a weapon to combat depression, but became universally accepted and "successful" only during (and because of!) the postwar expansion. At the first sign of renewed world recession, Keynesian theory has proved itself to be a snare and a delusion that has gone into immediate bankruptcy. The resulting "post-Keynesian synthesis" is also the theoretical reason for the reactionary exhumation of the simplistic, neoclassical, and monetarist economic theory of the 1920s. This revival of old theory is highlighted by the award of Nobel prizes in economics to Friedrich von Hayek, whose theoretical work was done before the Great Depression, and Milton Friedman, whose lone voice echoed in the wilderness until the new world economic crisis put his unpopular and antipopulist theories on the agenda of business board rooms and government cabinet rooms in one capitalist country after another. The real reason for the recent interest in fifty-year-old theories is that capital now wants them to legitimize its attack on the welfare state and "unproductive" expenditures on social services, which capital claims to need for "productive" investment in industry, including armaments. ~ Andre Gunder Frank

One grave and fundamental Keynesian error is to persist in regarding the interest rate as a contract rate on loans instead of the price spreads between stages of production. The former, as we have seen, is only the reflection of the latter. ~ Murray Rothbard

At the time, my personal research objectives were to provide Keynesian economics with more rigorous foundations and to tighten and elaborate the logic of macroeconomic and monetary theory. ~ James Tobin

The Keynesian belief that 'demand' is always at the root of underemployment and slow growth is a fallacy. ~ Edmund Phelps

Henry Ford, in a sense, was the first Keynesian. He paid his assembly workers high wages so they could afford to buy his cars. ~ Robert Kuttner

Keynesian economics has always been needed. ~ George Akerlof

There are few genuine conservatives within the U.S. political system, and it is a sign of the intellectual corruption of the age that the honorable term 'conservatism' can be appropriated to disguise the advocacy of a powerful, lawless, aggressive and violent state, a welfare state for the rich dedicated to a lunatic form of Keynesian economic intervention that enhances state and private power while mortgaging the country's future. ~ Noam Chomsky

I am not a monetarist, and I am not a Keynesian. On certain points I agree with each. ~ Maurice Allais

One nanny said, "Feed a cold"; she was a neo-Keynesian. Another nanny said, "Starve a cold"; she was a monetarist. ~ Harold Macmillan

For better or worse, US Keynesianism was so far ahead of where it started. I am a cafeteria Keynesian. You know what a cafeteria catholic is? ~ Paul Samuelson

Popular as Keynesian fiscal policy may be, many economists are skeptical that it works. They argue that fine-tuning the economy is a virtually impossible task, and that fiscal-stimulus programs are usually too small, and arrive too late, to make a difference. ~ James Surowiecki

One of the worst results of the retention of the Keynesian myths is that it not only promotes greater and greater inflation, but that it systematically diverts attention from the real causes of our unemployment, such as excessive union wage-rates, minimum wage laws, excessive and prolonged unemployment insurance, and overgenerous relief payments. ~ Henry Hazlitt

In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is long past the ocean is flat again. ~ John Maynard Keynes

No Keynesian has ever proposed a measure designed to make the individual more productive; for that would require institutional means for enabling him to acquire ownership of the nonhuman factor of production: capital. ~ Louis O. Kelso

The Keynesian world is a world in which there are two distinct classes of actors: the skilled investor, 'who, unperturbed by the prevailing pastime, continues to purchase investments on the best genuine long-term expectations he can frame', and, on the other hand, the ignorant 'game-player'. It does not seem to have occurred to Keynes that either of these two may learn from the other, and that, in particular, company directors and even the managers of investment trusts may be the wiser for learning from the market what it thinks about their actions. In this Keynesian world the managers and directors already know all about the future and have little to gain by devoting their attention to the misera plebs of the market. In fact, Keynes strongly feels that they should not! This pseudo-Platonic view of the world of high finance forms, we feel, an essential part of what Schumpeter called the 'Keynesian vision'. This view ignores progress through exchange of knowledge because the ones know all there is to be known whilst the others never learn anything. ~ Ludwig Lachmann

Had Schleicher been successful in his leadership of the German government at the end of 1932, he would probably have headed a very moderate, essentially anti-Nazi form of nationalist authoritarianism that would have avoided a sharp break with the republican constitution and promoted a reflationary, reformist economic policy along Keynesian or New Deal lines to revive the economy and conciliate German society. ~ Stanley G. Payne

The electoral victories of Thatcher (1979) and Reagan (1980) are often viewed as a distinctive rupture in the politics of the postwar period. I understand them more as consolidations of what was already under way throughout much of the 1970s. The crisis of 1973-5 was in part born out of a confrontation with the accumulated rigidities of government policies and practices built up during the Fordist-Keynesian period. Keynesian policies had appeared inflationary as entitlements grew and fiscal capacities stagnated. Since it had always been part of the Fordist political consensus that redistributions should be funded out of growth, slackening growth inevitably meant trouble for the welfare state and the social wage. ~ David Harvey

You could be disqualified for a job [at Harvard] if you were either smart or Jewish or Keynesian. So what chance did this smart, Jewish, Keynesian have? ~ Paul Samuelson

The individualist insists that drastic depressions are the result of credit inflation; (not excessive savings, as the Keynesians would have it) which at all times in history has been caused by direct government action or by government influence. As for aggravated unemployment, the individualist insists that it is exclusively the result of government intervention through inflation, wage rigidities, burdensome taxes, and restrictions on trade and production such as price controls and tariffs. The inflation that comes inevitably with government pump-priming soon catches up with the laborer, wipes away any real increase in his wages, discourages private investment, and sets off a new deflationary spiral which can in turn only be counteracted by more coercive and paternalistic government policies. And so it is that the "long run" is very soon a-coming, and the harmful effects of government intervention are far more durable than those that are sustained by encouraging the unhampered free market to work out its own destiny. ~ William F. Buckley Jr.

This book (Jarod Kintz's book) is trash. I mean, I assume it is, because that's where I found it while scrounging for lunch. However, I must admit that I haven't read it. I would have, but I am homeless, mainly due to my illiteracy (though Big Government, Keynesian monetary policy, and my struggle with alcoholism certainly played a large role). ~ Dora J. Arod

Broadly speaking, Keynesianism means that the government has a specific responsibility for the behavior of the economy, that it doesn't work on its own autonomous course, but the government, when there's a recession, compensates by employment, by expansion of purchasing power, and in boom times corrects by being a restraining force. But it controls the great flow of demand into the economy, what since Keynesian times has been the flow of aggregate demand. That was the basic idea of Keynes so far as one can put it in a couple of sentences. ~ John Kenneth Galbraith

The idea that full employment without property ownership will solve the world's problems is utter nonsense. The Keynesian concept that the function of capital is merely to amplify labor, not independently produce wealth is simply blindness. ~ Louis O. Kelso

Keynesian modelling relies on marginal propensity to consume and marginal propensity to invest. The idea that if we give more money to the poor, they have a propensity to consume that's much higher than the wealthy, though I wish they would talk to my wife about that; she seems to have a propensity to consume. ~ Myron Scholes

Economics has paid a terrible price for its dalliances with the Keynesian and neoclassical theories. ~ Edmund Phelps