Giving Politicians An Excuse To Spend More Money

Published July 23, 2020

Milton Friedman explains Keynesian economics and its influence on politicians and deficit spending. Theories made popular by John Maynard Keynes advocate for increased government spending during recessions and suggest that government should make up the difference if private spending isn’t high enough to boost the economy. Unfortunately, politicians have embraced Keynes’s ideas as a reason to spend, regardless of the state of the economy.

Discussion Questions

  1. What are the economic effects of governments running large budget deficits during economic booms?
  2. Why did Keynesian ideas win over the politicians? 

Cast

Milton Friedman

Milton Friedman

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