From today’s Cato dispatch and hot from the inbox:
The Great Debate Is Still Hayek vs. Keynes What is most likely to pull the economy out of the Great Recession: Keynesian reliance on government spending or Hayek’s solution of a reinvigorated private sector and global trading system? The debate today mirrors the one that occurred during the Great Depression, as Cato Senior Fellow Gerald P. O’Driscoll Jr. writes in the Wall Street Journal:
Is all spending equally productive, or should government policies aim to stimulate private investment? If the latter, then Mr. Obama is following in FDR’s footsteps and impeding recovery. He does so by demonizing business and creating regime uncertainty through new regulations and costly programs. In this he follows neither Hayek nor Keynes, since creating a lack of confidence is considered destructive by both.