The need to stimulate demand in the US and other developed economies has provoked a debate that goes beyond economic technicalities to questions about government’s overarching responsibilities. But the justification for such a policy must transcend economic logic if it is to win the necessary political support.
CAMBRIDGE – The need to stimulate demand in the United States and other developed economies has provoked a debate that goes beyond economic technicalities to questions about government’s overarching responsibilities. Like the great economist John Maynard Keynes before them, Larry Summers and Paul Krugman have advocated a greater role for public spending to compensate for weak private-sector demand. But the justification for such a policy must transcend economic logic if it is to win political support. A greater role for government requires an overriding mission.
CAMBRIDGE – The need to stimulate demand in the United States and other developed economies has provoked a debate that goes beyond economic technicalities to questions about government’s overarching responsibilities. Like the great economist John Maynard Keynes before them, Larry Summers and Paul Krugman have advocated a greater role for public spending to compensate for weak private-sector demand. But the justification for such a policy must transcend economic logic if it is to win political support. A greater role for government requires an overriding mission.