For a period of roughly 35 years, Keynesian theory provided a central paradigm for macroeconomists, and considerable progress was made on several empirical fronts. It was widely recognized that some of the ingredients of Keynesian economics (e.g. money illusion and/or nominal wage rigidity) rested on slender to non-existent microtheoretic foundations; and there were always dissenters. But, thought of as a collection of empirical regularities that fit together into a coherent whole, the theory worked tolerably well. In the 1970s, however, the Keynesian paradigm was rejected by a great many academic economists, especially in the United States, in favour of what we now call new classical economics. By about 1980, it was hard to find an American academic macroeconomist under the age of 40 who professed to be a Keynesian. That was an astonishing intellectual turnabout in less than a decade, an intellectual revolution for sure.
Alan BlinderRelated topics
academic age call central classical economics find fit great hard intellectual less money nominal now paradigm revolution rigidity sure thought under well 1970s favour years Keynesian 1980 StatesRelated quotes
I would summarize the Keynesian view in terms of four points:1. Economies sometimes produce much less than they could, and employ many fewer workers than they should, because there just isn't enough spending. Such episodes can happen for a variety of reasons; the question is how to respond.
2. There are normally forces that tend to push the economy back toward full employment. But they work slowly; a hands-off policy toward depressed economies means accepting a long, unnecessary period of pain.
3. It is often possible to drastically shorten this period of pain and greatly reduce the human and financial losses by "printing money”, using the central bank's power of currency creation to push interest rates down.
4. Sometimes, however, monetary policy loses its effectiveness, especially when rates are close to zero. In that case temporary deficit spending can provide a useful boost. And conversely, fiscal austerity in a depressed economy imposes large economic losses.
Paul Krugman
The leaders of the United States have not only permitted that but assiduously promoted the diversity rather than the unity of the people they govern.
The leaders of other countries have, as we have seen, at times attempted to disavow their cultural heritage and shift the identity of their country from one civilization to another. In no case to date have they succeeded and they have instead created schizophrenic torn countries. The American multiculturalists similarly reject their country's cultural heritage. Instead of attempting to identify the United States with another civilization, however, they wish to create a country of many civilizations, which is to say a country not belonging to any civilization and lacking a cultural core. History shows that no country so constituted can long endure as a coherent society. A multicivilizational United States will not be the United States; it will be the United Nations.
Samuel P. Huntington
As to us here our thoughts of every thing at home are suspended, by our astonishment at the wonderful Spectacle which is exhibited in a Neighbouring and rival Country-what Spectators, and what actors! England gazing with astonishment at a French struggle for Liberty and not knowing whether to blame or to applaud! The thing indeed, though I thought I saw something like it in progress for several years, has still something in it paradoxical and Mysterious. The spirit it is impossible not to admire; but the old Parisian ferocity has broken out in a shocking manner. It is true, that this may be no more than a sudden explosion... But if it should be character rather than accident, then that people are not fit for Liberty, and must have a Strong hand like that of their former masters to coerce them. Men must have a certain fund of natural moderation to qualifye them for Freedom, else it becomes noxious to themselves and a perfect Nuisance to every body else.
Edmund Burke
Unfortunately... the philosophy of Aristotle laid it down as a principle, that the celestial motions were regulated by laws proper to themselves, and bearing no affinity to those which prevail on earth. By thus drawing a broad and impassable line of separation between celestial and terrestrial mechanics, it placed the former altogether out of the pale of experimental research, while it at the same time impeded the progress of the latter by the assumption of principles respecting natural and unnatural motions, hastily adopted from the most superficial and cursory and remark, undeserving even the name of observation. Astronomy therefore continued for ages a science of mere record, in which theory had no part, except in so far as it attempted to conciliate the inequalities of the celestial motions with that assumed law of uniform circular revolution which was alone considered consistent with the perfection of the heavenly mechanism.
John Herschel
We realized in our hearts that we could not do much till conditions were radically changed-hence our overwhelming desire for independence-and yet the passion for progress filled us and the wish to emulate other countries which had gone so far ahead in many ways. We thought of the United States of America and even of some eastern countries which were forging ahead. But most of all we had the example of the Soviet Union which in two brief decades, full of war and civil strife and in the face of what appeared to be insurmountable difficulties, had made tremendous progress. Some were attracted to communism, others were not, but all were fascinated by the advance of the Soviet Union in education and culture and medical care and physical fitness and in the solution of the problem of nationalities-by the amazing and prodigious effort to create a new world out of the dregs of the old.
Jawaharlal Nehru