The Attack on Keynesianism (Right & Left)
By the late 1960s-early 19702, there are interesting developments in the new world; US is engaged in
war in Vietnam.
American consumers are buying huge amounts of importing goods; payment problems.
Stagflation: stag taken from stagnant (unemployment), flation taken from inflation.
Academics like a classical liberal theorist, wrote about the promise about the post-world war, the rights
of citizens, how this meant greater freedom and prosperity, etc.
This resulted to a road to totalitarianism. It was about advancing socialism.
We may all be Keynesians now but there is something fundamentally wrong with this orthodoxy.
Freedmen argued how we should turn our attention to inflation, supply, and abandon the emphasis on
taxing, and concern ourselves with monetary policies. Inflation should be kept low as possible by
printing money, keeping interest rates low, regardless of the cost it would have to unemployment.
In the late 1970s, notably in the US, people opposed to Keynesian economic policies.
1980s: Keynesian is on the defensive. There is a hug onslaught about how A government is to B.
Government is so large that the free market economy can no longer function properly.
1986: There were 10 income tax rates. Today there are 3
Prior to 1986, there were 7 income tax rates.
People weren’t interested in making an income since they were being taxed.
Corporations are being treated much too harshly on taxes. In every dollar that came from Ottawa, 50%
came from corporations. These rates were too high.
In the Keynesian era, governments started to regulate everything.
We must deregulate the economy by making it possible for corporations to invest without bureaucracy.
During the Keynesian period, the government were active participants in crown corporations.
The government should be out of the market place as a competitor to private business.
Big labour: 1944, the federal government in Canada made collective bargaining compulsory.
After 1944, labour law is changed; companies must negotiate with their certified minions. They must do
so with good faith bargaining. Things included such as unions being acceptable, negotiating increased
wages, health care benefits, and protections against arbitrary dismissal. Unions protect lazy, unproductive workers and labour laws cannot get rid of them and this is because
making business too high or inefficient.
Governments priorities are unemployment instead of workers.
If the emphasis is on inflation, then the idea that the second world war working standards should be put
back into effect.
When you can quit your job and get unemployment insurance or welfare, this give citizen security. This
is not a good thing; this is a part of the problem.
The government is like Robin Hood, stealing from the rich, giving to the poor. This is Keynesianism.
The ideological Left
In 1848, Marx and Ingels wrote that in a country with a capitalist economy, the governm