Keynesians of the free market unite!
Bill Gross, co-founder of PIMCO and not a man who can be denounced by the Right as a closest “socialist”, is both explicitly calling for Keynesian fiscal stimulus in order to drive forward the US’s faltering economy recovery and is forcefully warning Republicans that premature austerity “could stultify economic growth”.
In this extended quote he magnificently demolishes the Republicans’ farcical argument that austerity, by bolstering the confidence of the private sector, will unleash a wave of investment leading to lower unemployment, and states that government – yes, GOVERNMENT ! – should temporarily take the lead in promoting job creation through fiscal stimulus:
"[G]overnment must take a leading role in job creation,’ Gross said. ‘Conservative or even liberal agendas that cede responsibility for job creation to the private sector over the next few years are simply dazed or perhaps crazed…. In the near term, then, we should not rely solely on job or corporate-directed payroll tax credits because corporations may not take enough of that bait, and they’re sitting pretty as it is. Government must step up to the plate, as it should have in early 2009. An infrastructure bank to fund badly needed reconstruction projects is a commonly accepted idea, despite the limitations of the original "shovel-ready" stimulus program in 2009.’”
You will note he maintains that the fiscal stimulus provided by the Federal government in 2009 was insufficient – a point passionately and consistently made by Keynesians such as Paul Krugman and Brad DeLong – for the past three years. When the Titans of Wall St. declare themselves for Keynes, it becomes self-evident how intellectually bankrupt is the Right’s pseudo economics.
For crying out loud, what is it going to take before the mountain of evidence and the endless reports of human suffering accumulating before our eyes compel us to do what every first-year economics textbook told us we should have done in the first place!!?? Enough right-wing stupidity! Enough!