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blue bits. red rocks.
Wednesday 4 February 2009

Keynes’ genius came in seeing that the Depression wasn’t a moral problem. We’re not being punished for our exuberance or our stinginess, just as the folks on Capitol Hill weren’t at fault for not wanting to go out. In both cases, the problem wasn’t legislative, but merely technical: there just wasn’t enough money to go around. And the technical problem has a technical solution: print more money. The moralists insist it’s irresponsible for us to just print more money. After all, they say, debt got us into this mess; is more debt really going to get us out? This is what they told FDR, causing him to hit the break on a recovery that was pulling us out of the Great Depression. This is what they told Japan, ending their recovery and plunging the country into a “lost decade” of unemployment. It’s not irresponsible to spend money; it’s irresponsible not to. Factories are lying idle, people are sitting at home unemployed, and our economy is slowing. We can spend money to make use of it all, or we can just continue downward spiral. The choice is ours. Aaron Swartz

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