Comment Re:Broken window fallacy (Score 2) 264
The problem is you get people who are radical Keynesians (not people from Kenya!) who believe spending on something, anything will always be a net benefit.
Well, the point that Keynesians make is that during a demand slump, spending on something, anything will be a net benefit, they don't say that it will ALWAYS be a net benefit. In the current economy, where consumers can't spend because they are debt-constrained, and industry won't spend because there are no customers buying, then government should step in and spend to fill the demand gap and cut taxes to give consumers and industry more spare cash to spend. The corollary to this is during good times, you raise taxes and pay off the debts accrued during the bad times which we were actually doing a great job of until the Bush tax cuts. Since we went into this recession with very low tax rates, further tax cuts have little benefit and it would be, under these specific economic conditions, a net benefit for the government to spend money to put people to work doing almost anything, since they will turn around and spend that money and create further economic activity.