The standard Keynesian play is to increase government spending in order to reduce unemployment and increase economic growth. Here's why it consistently fails.
Advocates of the New Green Deal emphasize new "green jobs" and other benefits, but the NGD is basically a Keynesian scheme in which government allegedly spends us into prosperity.
Standard Keynesian theory posits that if the economy slows, government can revitalize it by increasing spending, which supposedly creates new demand. But government can't create something from nothing.
The combination of covid lockdowns, money pumping, and attempts to force a new green economy are taking their toll. This is not going away any time soon.
Keynesian orthodoxy claims government can successfully counter recession through "expansionary" policies. To the contrary, these policies increase the danger to the economy.
Keynes viewed depressions as something that could naturally plague market economies when total spending was insufficient to support full employment. Only with wise oversight could we hope to achieve steady economic growth.
