Embrace Keynesian economics for a brighter future

I believe that the present economic crisis and the 1929 crash are linked.

They are both due to free market capitalism.

I believe that what resolved the problems exposed by the 1929 crash was the social democratic-inspired Keynesian economic policy.

I believe, furthermore, that our present crisis has its roots in the ideology and practice of turbo-charged capitalism. We have an unregulated global market. Finance, instead of trade, has become the major trend in the international markets. Instead of market rationality, as promised by the neo-liberals, we get market chaos. A new Keynesian revolution would demand a rebalancing of the relationship between the state and the market.

Government fiscal policy should be anti-cyclical. Consumer demand should be discouraged during a boom.

When an economy experiences a downturn, governments can stimulate domestic demand.

Sadly in the case of Ireland, the effects of “Champagne Charlie” have reduced our room to stimulate demand. Governments’ number one priority should be jobs, jobs, jobs.

There are roadblocks to a new and better future. By embracing Keynesian economics, a brighter future awaits humanity.

John O’Brien

Buttevant

Co Cork