Where is John Maynard Keynes when we need him?

The prevailing political view on economics up until 1932 was that discipline and hard work would cure all that might ail us. After Roosevelt came to power, he changed his mind and adopted the Keynesian view that the economy needs discipline in good times and largesse during recessions and depressions.

We have a new theory, as wacky as the earlier views, which is that profligacy is the key to prosperity. We are now on the verge of recession and the politicians are simply recommending more hair of the dog that bit us. We're here because we didn't want to consider either that running a war would involve some domestic sacrifices, or that running out of petroleum would require us to change out consumption patterns. The consequence is that we are caught unprepared by oil at $105/barrel and the fact that foreigners regard U.S. debt as increasingly problematic.

We need to raise, not lower taxes, and spend the money where needed. We need to invest in infrastructure to employ some of those who were formerly building too many too large houses. We need to invest in research to develop energy-saving technologies. We need to hire bands of shiftless teenagers to accost people at Interstate rest stops and offer to check their tire pressure.

We do not need to write checks to people who are frightened for their futures. Those people, and by May that's going to be most people, will just put the money in the bank or use it to pay down credit cards. There will be a large transfer of debt from the private sector to the public, but there will be no surge in spending. Keynes advocated spending by government, not transfer to individuals who might not spend. This is nuts.