Notes on The Trouble With Progressive Economics
This is an excellent little article on economics. I have been trying to read more about economics to make some sense of what is going on these days. This piece helped enormously. If you are in a similar place, give it a read.
It offers an explanation of how we got into the current mess, using the various economic theories of the last hundred years or so. The author does a good job of simply presenting the major tenets of classical, Keynsenian, neo-classical and progressive views of economics.
He makes the point that the Keynesian or progressive approach is to stimulate demand - be it by government spending or private spending. We basically encourage low and middle income families to spend more and more. Progressive policies are focused more on sharing the wealth, spreading it about equitably, and not on creating wealth - the true classical approach. That sounds a lot like classical economics, but that school would not give the government any role in creating wealth. He says that today, we need sustained government intervention and investment in the things that cause wealth creation: new technology, education, innovation, productivity. Some progressives actually oppose these programs because they seem to threaten full employment.
He does a nice job on globalization as well. Instead of viewing it as a threat, where businesses in other countries can out compete us by ignoring labor and environmental standards, we have to recognize that it is inevitable, and work with it and through it. Protectionism won't help.
I think this approach needs a name - Progressive Classicism? I like it - try it, it'll grow on you. It's better than "neo-classicism with a heart" - the failed approach.
No comments:
Post a Comment