We are all Keynesians now.” — attributed to President Richard Nixon
In the depths of the Great Depression, economist John Maynard Keynes theorized that the government could control business cycles through monetary and fiscal policies.
Keynes was right to some extent. Lower taxes, higher government spending and lower interest rates stimulate the economy, at least for a while. Even Nixon came to believe in it.
The phrase “We are all Keynesians” caught on. Economics is the dismal science after all.
A Newsweek cover story in 2009 took the catchphrase a step further in proclaiming on its cover that “We are all socialists now” as they celebrated President Barack Obama’s promise to fundamentally transform America.
Maybe Newsweek didn’t really think socialism would save the world, but just hoped it would save Newsweek. Within a few years Continue reading