Re: [Pen-l] more grist for Tom's mill

[Doyle Saylor <doylesaylor@xxxxxxx>]

Greetings Economists,
On Jan 28, 2009, at 12:21 PM, Jim Devine wrote:

> Some old guy developed a theory back in 1936 that suggested that
> government purchases (including military spending) can substitute for
> domestic consumer spending, as can exports and (in theory) fixed
> investment.
>
> In other words, Keynesianism has largely superseded
> underconsumptionist theories, so that if we're going to be
> underconsumptionist, we should use Keynesian ideas.

Doyle;
Which makes no sense given that U.S. workers can't buy which everyone  
acknowledges is why things are spiraling down in the U.S.  That  
'consumer' support of the global economy that borrowing allowed led  
right into this crisis.  This also implies that military Keynesianism  
is  a solution to the current economic problems.  In what sense does  
Keynes supersede under consumption as a broad sense of the foundation  
of the current crisis?
Thanks,
Doyle Saylor
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