about the NJ teachers, Keynes and Roosevelt to clear up a couple of misconceptions. I don't think the comment will survive the rigorous screening process associated with his blog, so I will re-post it here. (Italics are quotes from his post.)
The Keynesian notion that a government can spend its way out of a deficit is, one hopes, now dead.
Umm.... That's not actually what Keynesian theory says. Keynes proposed
that the solution to the Great Depression was "to stimulate the economy ("inducement to invest") through some combination of two approaches: a reduction in interest rates and government investment in infrastructure."
Keynes did not say that the government can spend its way of of a deficit (that idea is self-contradictory, do you see why?). He said that government spending along with reduction of interest rates can bring the economy out of a depression. Do you see the difference?
The Roosevelt administration embraced Keynes, a British economist, throughout the 1930s and the result was the Great Depression.
That's an interesting idea, especially considering that 1) Keynes' seminal work
wasn't published until 1936, fully 7 years after the Great Depression
began, and 2) Roosevelt didn't take office until 1933, 4 years into the Great Depression. Perhaps Roosevelt had the same time machine
that Obama used to go back and place those birth announcements in the Hawaiian newspapers.
What many Americans are only now realizing is that it has been the civil service unions that have been draining state and local budgets thanks to unrealistic salaries
Certainly some civil employees are too highly compensated (look at the former City of Bell officials). I don't think that's the case for NJ teachers though, as this article
shows. NJ school administrators, on the other hand, probably make too much (235 of them make more than the Governor).
I frankly have zero faith that either the Democrats or Republicans, whoever is in Congress after the midterm elections, will do much more than nibble around the edges of the fiscal crisis.
I definitely agree with you there. :)