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That's a funny thing, as in not funny at all actually. In the latest issue of Real-world economic review, Richard Koo comments that it has proved extremely hard for peace-time democracies to maintain stimulus programs over time. As soon as the slightest green shoots are noticed, stimulus is stopped and the recession returns.

However, he also notices that there is nothing as corrosive to democracy as sustained depressions. Well then say I, this resolves the problem! With the disappearance of democracy, the political problem of maintaining a stimulus disappears, as we see the advent of massive military Keynesianism. Yay. :p

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Wed Dec 14th, 2011 at 10:23:32 AM EST
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And yes, the only thing we seem to learn from history is that we learn nothing from history.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Wed Dec 14th, 2011 at 10:24:21 AM EST
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With the disappearance of democracy, the political problem of maintaining a stimulus disappears, as we see the advent of massive military Keynesianism. Yay.

You joke, but this is no joke: Political Aspects of Full Employment by Michal Kalecki in 1943

The reasons for the opposition of the 'industrial leaders' to full employment achieved by government spending may be subdivided into three categories: (i) dislike of government interference in the problem of employment as such; (ii) dislike of the direction of government spending (public investment and subsidizing consumption); (iii) dislike of the social and political changes resulting from the maintenance of full employment.  We shall examine each of these three categories of objections to the government expansion policy in detail.

...

The dislike of government spending policy as such is overcome under fascism by the fact that the state machinery is under the direct control of a partnership of big business with fascism.  The necessity for the myth of 'sound finance', which served to prevent the government from offsetting a confidence crisis by spending, is removed.  In a democracy, one does not know what the next government will be like.  Under fascism there is no next government.

The dislike of government spending, whether on public investment or consumption, is overcome by concentrating government expenditure on armaments.  Finally, 'discipline in the factories' and 'political stability' under full employment are maintained by the 'new order', which ranges from suppression of the trade unions to the concentration camp.  Political pressure replaces the economic pressure of unemployment.

And this, my friends, is why Fascism is the primary mode of failure of Liberalism.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Wed Dec 14th, 2011 at 10:29:54 AM EST
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