by John Rubino
From Mark Nestmann:
In 1971, President Richard Nixon supposedly told an ABC News reporter that he was “now a Keynesian in economics.”
Nixon’s statement was an acknowledgment that he agreed with the ideas put forward by John Maynard Keynes. In his 1936 book The General Theory of Employment, Interest, and Money, Keynes recommended higher government spending and tax cuts to stimulate demand to help pull the global economy out of the Great Depression. He believed that business cycles — periods of expansion followed by recessions — were the inevitable consequence of capitalism and that deficit spending during economic downturns was essential for recovery to occur.