Keynes on 1870-1914: Wednesday Economic History

Should-Read: Mark Thoma: How social welfare benefits help the economy: "Donald Trump has, at times, said he’ll protect Medicare and Social Security...

...But given Trump’s plans to cut taxes and raise the national debt by trillions over the next decade, and the general Republican sentiment about social insurance, it’s hard to see how these programs can be protected if Republicans gain control of Congress and the presidency. Part of the GOP’s objection to these programs is the idea that they take money from those who have earned and deserve it and redistribute it to those who have not. They say that’s unfair. Is that true, or is there an economic basis for social insurance?

The case for social insurance begins with the recognition that capitalist economies are subject to boom-and-bust cycles.... The benefit of a capitalist system is much higher economic growth on average and a more dynamic, innovative and efficient economy. The cost is the instability...

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