As is often the case with major disputes in economics, the argument over fiscal policy went on for years, with some critics of fiscal policy still defending their position when this book went to press. It seems fair, however, to say that among economists a more or less Keynesian view of the effects of fiscal policy came to prevail. Careful statistical studies at the International Monetary Fund and else where showed that austerity policies have historically been followed by contraction, not expansion. Recent experience, in which countries like Spain and Greece that were forced into severe austerity also experienced severe slumps, seemed to confirm that observation. Furthermore, it was clear that those who had predicted a sharp rise in U. S. interest rates due to budget deficits, leading to conventional crowding out, had been wrong: U. S. long-term interest rates remained near record lows even during the years from 2009 to 2012, when the government ran very large deficits.
Paul KrugmanRelated topics
argument book came case clear contraction conventional crowding due economics expansion experience fair fiscal went government greece interest international large less near position ran rise sharp view wrong years KeynesianRelated quotes
...it is already clear that the policies that we have been pursuing have brought about a profound cultural change in this country. That, indeed, is what it is all about. For that cultural change is the only route to the economic success that we all wish to see, and which is no longer promise but reality. No longer do people accept that economic policy should be about regulating everyone's lives and imposing penal tax rates, in the illusion that that will benefit those on lower incomes. Instead, it is now widely recognised except on the Opposition Benches that one cannot make the poor rich by making the rich poor and that there are enormous benefits in getting the state off people's backs, in transferring decision-making from the state to the people. And it is now abundantly clear that giving greater freedom and greater incentives has removed the shackles that have held back Britain for so many years and has liberated a great surge in enterprise.
Nigel Lawson
The administrators of the executive power may be either elective or not; and in the former case all or only some of them may be elective. They are elective in a proper democracy, that is to say, in a democracy which recognizes representation. If all the public officials are directly elected by the whole people, the democracy is a pure democracy; if only some, it is a mixed democracy. The public officials may also fill vacancies themselves; this is the case in a pure aristocracy. But if only some of the magistrates are thus replaced by the public officers, and if the others are again directly elected by the people, then the form of government is that of a democratic aristocracy. A permanent president (monarch) may also be elected to exercise the executive power during his lifetime. In all these cases, either all citizens of the commonwealth, or only some of them, are eligible to office. Eligibility may, therefore, be limited or unlimited.
Johann Gottlieb Fichte
As I have already hinted, one of the directions of work which the realm of ideas of the Macy meetings has suggested concerns the importance of the notion and the technique of communication in the social system. It is certainly true that the social system is an organization like the individual, that it is bound together by a system of communication, and that it has a dynamics in which circular processes of a feedback nature play an important part. This is true, both in the general fields of anthropology and sociology and in the more specific field of economics; and the very important work, which we have already mentioned, of von Neumann and Morgenstern on the theory of games enters into this range of ideas. On this basis, Drs. Gregory Bateson and Margaret Mead have urged me, in view of the intensely pressing nature of the sociological and economic problems of the present age of confusion, to devote a large part of my energies to the discussion of this side of cybernetics.
Norbert Wiener
Such laws as the franchise-tax law in this State, which the Court of Appeals recently unanimously decided constitutional -- such a law as that passed in Congress last year for the purpose of establishing a Department of Commerce and Labor, under which there should be a bureau to oversee and secure publicity from the great corporations which do an interstate business -- such a law as that passed at the same time for the regulation of the great highways of commerce so as to keep these roads clear on fair terms to all producers in getting their goods to market -- these laws are in the interest not merely of the people as a whole, but of the propertied classes. For in no way is the stability of property better assured than by making it patent to our people that property bears its proper share of the burdens of the State; that property is handled not only in the interest of the owner, but in the interest of the whole community.
Theodore Roosevelt
Cesalpino, a celebrated botanist, conceived that fossil shells had been left on the land by the sea, and had concreted into stone during the consolidation the soil; and in the following year (1597), Simeone Majoli went still farther, and coinciding for the most part with views of Cesalpino, suggested that the shells and matter of the Veronese, and other districts, might have cast up, upon the land, by volcanic explosions, like those gave rise, in 1538, to Monte Nuovo, near Puzzuoli.- This hint was the first imperfect attempt to connect the position fossil shells with the agency of volcanoes, a system more fully developed by Hooke, [Antonio] Lazzaro Moro, Hutton, and other writers. Two years afterwards, Imperati advocated the animal origin of fossilized shells, yet admitted that stones could vegetate by force of 'an internal principle,' and, as evidence of this, he referred to the teeth of fish, and spines of echini found petrified.
Charles Lyell