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You are here: Home / 5 Liberal Arts / Economics / Is Government Spending the Answer to an Economic Downturn?

Is Government Spending the Answer to an Economic Downturn?

February 6, 2009 by mattperman

Keynesian economics — which dominated economic thought for a decent chunk of last century — said yes. Other schools of economic thought — which I find more plausible — do not think so. Gregory Mankiw had a good, brief discussion in the NY Times last month of how there is ample reason to doubt that increased government spending is what the economy needs.

Also of note: At the end of the article, Mankiw gives this quote from Paul Samuelson: “I don’t care who writes a nation’s laws or crafts its advanced treaties, if I can write its economics textbooks.” That’s worth pondering in the event that we ever doubt the importance of sound economic theory.

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About Matt Perman

 

I am the director of career development at The King’s College NYC, co-founder of What’s Best Next, and the author of What’s Best Next: How the Gospel Transforms the Way You Get Things Done. This is my personal website where I blog on four of my favorite topics: theology, apologetics, culture, and living in New York City.

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