Can somebody in detail break down the difference between European Socialism versus Keynesian Economics being displayed in America today? Keynesian economics is often dubbed "soft socialism" and from my knowledge European Socialism is a "mixed economy" as well. In the US we are now more of a mixed economy ourselves. Please help me understand the major differences between the two and break it down for me.
European Socialism versus Keynesian Economics
- Thread starter McFadden5252
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Keynesian Economics, also known as Demand side economics is the mistaken belief that government spending can stimulate demand.
European Socialism is a state of economic deterioration wherein which the "takers" in a society significantly outnumber the "producers" due to some sort of initial economic calamity that turns a productive society into an entitlement society, which further triggers an all out economic death spiral into a complete economic self-destruction.
Demand is infinite.. There will always be demand. However, Supply is finite. If you produce, there will be consumption of your goods/services. I believe in supply side economics. Supply spurs job growth, more capital, more investment, more factories, more jobs. I see what you are saying but we are rapidly becoming a nation of people who believe they are Entitled to everything so what differs us from European socialism?
All the civilized societies as the they give voice to the downtrodden and the oppressed (almost always the dumb and the lazy) set themselves in motion go get to that eventual point where the democratic process itself becomes a danger to the vitality of the Republic. America is at that decisive point at this moment in time.
The US doesn't practice Keynesian economics.
The Government has been applying Keynesian intervention now for decades. Look at all the bailouts and Quantitative Easings. These are all contributing to the altering of our economy. More examples: bailing out Amtrak, subsidizing college loans and the creation of price floors, price ceilings, rent control, etc.
I'm guessing that you mean by that the U.S. doesn't practice the other half, where in boom times we are suppose to either cut spending or raise taxes. If that is the case, I would have to agree with you: we don't follow Keynes, we follow the part we like and reject the part we don't. Unfortunately the part we reject is needed to make it work as intended.