Tuesday, February 1, 2011
The Major Schools of Economics
Lord Keynes at Social Democracy for the 21st Century has a very good overview of the major schools of economic thought. The divisions among the various free market schools are really quite interesting. I found the differences between Margaret Thatcher and Ronald Reagan intriguing as well. Lord Keynes contends that Thatcher was indeed the more doctrinaire neoliberal of the two. I agree with this assessment. As Lord Keynes notes, Reagan practiced a muscular form of military Keynesianism which eventually led to huge budget deficits. While I doubt they would admit it, most Republicans still practice this kind of military Keynesianism. I think there is definitely a connection between the Republican orientation of many Western and Southern states and the large amounts of military spending that is funneled to the West and South.