Those policies failed because of deficit spending during good times, and they never cooled there spending. Keynes said to cool spending when the economy recovers, and pay off the debt in good times.
What Keynes said and what Keynesianism is to America are not necessarily identical. I think Kennedy-Johnson admin can testify to that. Responsible management is requisite, but evidently not practical. Perhaps it hasn't been universally understood or agreed upon. I suppose Political expediency is also an unknown quantity. Maybe the energetic roots of the institution of Keynesianism lend it to liberal interpretation?
Keynesianism from what I remember deals with something else entirely.
http://en.wikipedia.org/wiki/Keynesian_economics
Keynesian economics (pronounced /ˈkeɪnziən/, also called Keynesianism and Keynesian Theory) is a macroeconomic theory based on the ideas of 20th-century British economist John Maynard Keynes. Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and therefore, advocates active policy responses by the public sector, including monetary policy actions by the central bank and fiscal policy actions by the government to stabilize output over the business cycle.[1] The theories forming the basis of Keynesian economics were first presented in The General Theory of Employment, Interest and Money, published in 1936; the interpretations of Keynes are contentious, and several schools of thought claim his legacy.
http://en.wikipedia.org/wiki/Mercantilism
In later years, the United States took mercantilism to its most advanced and fully developed level as an economic policy when Alexander Hamilton enunciated the Hamiltonian economic program, and Abraham Lincoln finally solidified a trade and industrial policy which was to guide American economic policy into 1972. Paradoxically, during the 19th and early 20th centuries, at a time when America's pursuit of mercantilism made it the greatest economic power in the world, Europe, by contrast, with the noteworthy exception of Germany, began abandoning mercantilism.
The Hamiltonian economic program was the set of measures that were proposed by American Founding Father and 1st Secretary of the Treasury Alexander Hamilton in three notable reports and implemented by Congress during George Washington's first administration.
http://en.wikipedia.org/wiki/Hamiltonia ... ic_program
* First Report on Public Credit -pertaining to the assumption of federal and state debts and finance of the United States government.
* Second Report on Public Credit -pertaining to the establishment of a National Bank.
* Report on Manufactures -pertaining to the policies to be followed to encourage manufacturing and industry within the United States.
http://en.wikipedia.org/wiki/American_School_%28economics%29
The American School, also known as "National System", represents three different yet related constructs in politics, policy and philosophy. It was the American policy for many decades, waxing and waning in actual degrees and details of implementation. Historian Michael Lind describes it as a coherent applied economic philosophy with logical and conceptual relationships with other economic ideas.[1]
It is the macroeconomic philosophy that dominated United States national policies from the time of the American Civil War until the mid-twentieth century[2][3][4][5][6][7] (after mercantilism and prior to Keynesian economics, it can be seen as a modified type of classical economics). It consisted of these three core policies:
1. protecting industry through selective high tariffs (especially 1861–1932) and some include through subsidies (especially 1932–70)
2. government investments in infrastructure creating targeted internal improvements (especially in transportation)
3. a national bank with policies that promote the growth of productive enterprises.[8][9][10][11]
It is a capitalist economic school based on the Hamiltonian economic program.[12] The American School of capitalism was intended to allow the United States to become economically independent and nationally self-sufficient.
The American School's key elements were promoted by John Q. Adams and his National Republican Party, Henry Clay and the Whig Party, and Abraham Lincoln through the early Republican Party which embraced, implemented, and maintained this economic system.[13] The American School has evolved into the mixed economy of today's America.
During its American System period the United States grew into the largest economy in the world with the highest standard of living, surpassing the British Empire by the 1880s.[14]
Entirely? Really? Let's set the bar at "broadest interpretation". Keynesianism isn't seperate. Keynesianism isn't dominant. Keynesianism, in America, is a derivative.
- By Godstud
- By Pants-of-dog
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