The Years of Lyndon Johnson: The Path to Power

[A18]

...[T]he fact that it was possible to enact such a program [as the Great Society] in the first place was and is a tremendous testament to the wonders of Keynesian economics.

What 'wonders?'

It was possible because of massive Democratic pickups in 1958 due a severe economic downturn, coupled with Kennedy's assassination and the 1964 landslide.

You must be logged in to read this quote.

That doesn't sound right. Social Security privatization was popular until after the 2004 election.

[A18]

And you attribute that to Keynesianism? The free market has always gone through periods of rapid economic growth. Easiest examples are the Industrial Revolution and the Roaring Twenties. That doesn't mean mercantilism causes economic expansion.

Social Security privatization had as much as two-thirds support.

[A18]

I wasn't equating Keynesianism with mercantilism. I was merely pointing out that economic growth isn't necessarily caused by the prevailing policies of the era.

Keynesianism doesn't really "generate" demand. It just shifts it from the investment sector to the consumer sector. "Saving" is just another form of spending.

[A18]

If one person is saving, he's investing (either directly or indirectly), and another is spending the money.