⬆️ @ChrisMayLA6
They spun the basic tenet of #Keynsian or #Keynesian Theory:
Per #IMF, "Keynesians believe that… fluctuations in ANY component of spending,… [e.g.] investment,… cause output to change. If government spending increases, for example, and all other spending components remain constant, then output will increase".
#Reagan's connivers substituted "rich" for "government" and claimed the RICH would drive growth by reinvesting money saved in taxes.
https://www.imf.org/external/pubs/ft/fandd/2014/09/basics.htm
>> so it is working, then; just not for us...
>> So it's not so much #Keynes has been rejected, but rather it's only applicable when the rich are in trouble!
#Keynsian theory formed the underpinnings of #Reagan's obscene #TrickleDown theory in which the rich would reinvest money saved in taxes to drive growth.
#US has the rich getting richer while infrastructure like bridges and airports crumble, and services like #heathCare are only for those who can afford to pay.
Some good news for those on low wages, continuing to face a #costoflivingcrisis - the UK #minimumwage will rise by 9.7%...
If you wanted a simple bit of #Keynsian employment policy, this help with 'effective demand' is a good (if limited) step... it represents an immediate transfer from #shareholders to #workers, provided its well policies, of course, and will ensure all that extra money is actually spent in the economy... so good for the low paid, and good for aggregate demand...
Ramesh #NotGoingBack
Emeritus Prof Christopher May