"An economic school has led to gridlock in Washington" [View all]

[applegrove]

An economic school has led to gridlock in Washington

By E.J. Dionne Jr at the Washington Post

http://www.washingtonpost.com/opinions/ej-dionne-jr-an-economic-school-has-led-to-gridlock-in-washington/2014/02/09/12de8df0-9020-11e3-b46a-5a3d0d2130da_story.html?tid=pm_pop

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Hayek believed, Judt said, that “if you begin with welfare policies of any sort — directing individuals, taxing for social ends, engineering the outcomes of market relationships — you will end up with Hitler.”

But to the contrary, postwar initiatives along Keynesian lines are precisely what prevented both the resurgence of fascism and the collapse of Western Europe into communist hands. For that matter, Keynesian steps also kept the whole world from going into a much deeper and more disastrous slide after the financial crisis of 2008.

Yet today’s conservatives are in thrall to Austrian thinking, and this explains a lot of what is going on in Washington. Broadly popular measures such as raising the minimum wage and extending unemployment insurance — normal, bipartisan legislation during the Keynesian heyday — are blocked on the assumption that people are better off if the government simply keeps its mitts off the market.

It is now difficult for Congress to pass even the kind of spending that all sides once saw as necessary public investment in transportation, research and education. It’s that “road to serfdom” again: Anything government does beyond enforcing contracts and stopping violence is denounced as the first step of a fox trot toward dictatorship.





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