Were George W. Bush's policies Keynesian?

No, not by intent.

The concept behind Keynesian economics is demand side management. At core, recessions are the result of consumption being below normal levels for various reasons. The solution, raise consumption. The tools, spending increases, deficit spending, tax cuts.

But the target is consumption spending. And that has to be recognized.

Supply side ecomics is different. SS is, by design, supply side management. The intent of the policies is to improve the economy by increasing investment, not consumption. That is why the focus is tax cuts rather than spending increases.

Now why I add the qualifier Not by intent, is that Supply Side Economics objectively does not exist. Or, perhaps it would be better phrased, Supply Side Economics policy recomendations are not actually designed to increase investment. So while the advocates will tell you that the intent is to increase investment, in reality the effect is to increase consumption and speculation.

So Bush is not a Keynesian. And what he did is not Keynesian. However, only by looking at it from a Keynesian perspective can it be understood.

• By Cutlass
• Dec. 26, 2009

Yes, tax cuts combined with spending hikes are a Keynesian approach to economic woes

Mooted by MagisterCultuum

• By Nicolas Holzapfel
• Dec. 26, 2009