Stephen Yearwood
1 min readOct 29, 2021

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This article, like so many, perpetuates a misunderstanding of Keynesianism. Anyone is free to agree or disagree with him, but we should all do so on the basis of an accurate understanding of the economic paradigm he actually formulated.

Keynes maintained that the capitalist system functioned best with a large, economically viable middle class--because people in that class have money to consume and save/invest in proportions that are optimal for that kind of economy. He therefore espoused a progressive tax structure, using taxes to subsidize the middle class (in housing, transportation, education, heath care, etc.). Separately, he espoused using the fiscal policies of the central government (aided by appropriate actions on the part of the central bank) to compensate for any maladjustments that might arise between income/consumption and saving/investment for the economy as a whole--even to prevent such maladjustments from arising.

Keynes explicitly made the point that poverty was a whole other issue. He was personally in favor of policies to alleviate poverty, but in the sense of that as a cost that morality required of a good society.

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Stephen Yearwood
Stephen Yearwood

Written by Stephen Yearwood

M.A. in political economy (money/distributive justice) "Please don't confront me with my failures/ I'm aware of them" from "These Days," as sung by Gregg Allman

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