| Abstract: | A bstract . A crisis is afflicting traditional liberal economists. The crisis policy devised by John Maynard (Lord) Keynes , which seemed to work well during World War II and in postwar reconstruction, met its nadir in 1975. Contrary to Keynesian theory, formalized in the Phillips Curve argument that inflation and mass unemployment are mutual trade offs, double digit inflation and record unemployment made further deficit spending an impossible policy. Some Keynesians, switched to a new ideology, "industrial policy" , a form of piecemeal planning likely to eventuate in a new protectionism. Analogous to the supply side economics ideology, industrial policys' adoption by many leading Democrats could drive many Keynesian economists from the Democratic party. |
