Obama Using 1930's Solutions for a 2010 Problem
- The trouble is that most of the 20th century Democratic solutions wonít work very well in the vastly changed economic landscape of the 21st century. Whatever one thinks of Keynesian economics, the benefits of deficit spending were clearly greater in the 1930s (when the US was essentially a closed economy) than they are today. If Americans have more money to spend, they are likely to go down to Walmart and buy something from China. The multiplier effect of government spending is weaker than it used to be.