On Tuesday I wrote a guest post for Labourlist, about bringing Keynes back into the public domain through the ongoing internal debate in the Labour Party.
I have recreated it below.
Mark Ferguson recently wrote an admirable article for this blog: In praise of (real) Keynesianism. It is admirable because Keynesianism needs to be brought back into Labour’s debate on the economy. Surpluses are important as a way to save for the future in order to enact the principles from Keynes’ General Theory of Employment, Interest and Money. However, surpluses can be better prescribed to other economic activities, such as Hospital or School building – as an alternative to the policy of PFI – in any economic situation.
The fascination with using state surpluses to drive aggregate demand in a slump stems from a Keynesian illiteracy. This is not to say that people are economically illiterate when it comes…
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