The Global Economy Desperately Needs Another Brilliant Keynes Idea
Susmit Kumar, Ph.D.
It is better to negotiate some kind of tax on both trade surplus and trade deficit as proposed by Keynes when debts are manageable, otherwise China is going to rule the global economy.
Before the 1930s Great Depression, there were recessions in 1797-1800, 1807-1814, 1819-24, 1837-43, 1857-60, 1873-79, 1893-96, 1907-8 and 1918-21. The government did not intervene in any of these previous economic recessions and opted to let the economy find its own solution. Until 1930s Great Depression, economists thought that free markets would automatically provide full employment on their own without the intervention of government.