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Some Keynesians Call Romney Out


Sharp readers like Jonathan Chait have seized on a telling exchange in Mark Halperin’s recent interview with Mitt Romney, in which Romney blatantly undercuts the anti-Keynesian line that he and other Republicans have been pushing for the past couple years.

Halperin: You have a plan, as you said, over a number of years, to reduce spending dramatically. Why not in the first year, if you’re elected—why not in 2013, go all the way and propose the kind of budget with spending restraints, that you’d like to see after four years in office? Why not do it more quickly?
Romney: Well because, if you take a trillion dollars for instance, out of the first year of the federal budget, that would shrink GDP over 5%. That is by definition throwing us into recession or depression. So I’m not going to do that, of course.

Chait notes, bemusedly, that this deviation from orthodoxy has provoked no outrage on the right, which to him is further proof of just how cynical the Republican anti-Keynesian stance really is:

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Tom Woods Said It Best

"He thinks budget cuts cause depressions."

"Bipartisan: both parties acting in concert to put both of their hands in your pocket."-Rothbard

He's Scared

As much as the Republican rhetoric starts breaking away from Keynesian economics, they still seem scared to try anything else. I think its because they don't quite understand Austrian economics and consider it to be "fringe". No one wants to be the person to make a mistake, and so those that don't understand it are scared of it.

In addition, if you break away from Keynesian economics, you lose an opportunity for government to be involved in enterprise. We wouldn't want that, would we?!

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