Relevant and even prescient commentary on news, politics and the economy.

Paul Krugman is wrong; Obama DOES need to discuss Keynesian economics in his State of the Union address. Here’s why.

Paul Krugman is my hero.  I credit him–him alone, really–with ending, finally, the Peterson Foundation’s capture of almost all of the mainstream news media as their PR outfit.  Just as I credit Occupy Wall Street, also alone, with finally ending the decades-long political prohibition of class warfare by any group but the hedge fund/CEO crowd. […]

Finally … The Change We’ve Been Waiting For

This was a throw-down-the-gauntlet speech.   We have ourselves a leader.   —-UPDATE: E.J. Dionne equates this speech with FDR’s second inaugural speech and Reagan’s first one, in its importance. I hadn’t thought of Reagan’s–and of course the substance of today’s speech was the mirror image, the opposite, of Reagan’s–and I wasn’t alive for any […]

How Keynesian Policy Led Economic Growth In the New Deal Era: Three Simple Graphs

by Mike Kimel In this post, I will show that during the New Deal era, changes in the real economic growth rate can be explained almost entirely by the earlier changes in federal government’s non-defense spending. There are going to be a lot of words at first – but if you’re the impatient type, feel […]

Scott Sumner Digs Deeper

by Mike Kimel Scott Sumner Digs Deeper Scott Sumner criticizes my most recent post in which I indicate that Keynesian theory explains growth rates during the New Deal era better than theories proposed by monetarists. He starts by criticizing this, which I wrote in my earlier post. Aggregate demand was very slack when FDR took […]