We are all Keynesians now

Mario Rizzo notes a very interesting quote from Keynes.  It seems that by 1942, after years of New Deal spending, Keynes had soured on public works as a tool to stimulate the economy:

Organized public works, at home and abroad, may be the right cure for a chronic tendency to a deficiency of effective demand. But they are not capable of sufficiently rapid organisation (and above all cannot be reversed or undone at a later date), to be the most serviceable instrument for the prevention of the trade cycle.

(Via Greg Mankiw, via Instapundit.)

Keynes’s first critique (the incapability of rapid organization) seems to be borne out by the current effort.  Sadly, the second one (it cannot be undone) will ultimately loom even larger.

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