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Economy

Why The Economic Crisis Should Kill Keynesian Conventional Thinking

Op-Ed: A countervailing conservative French economist blames the West’s imploding economy on long-accepted Keynesian policies of boosting consumption via public spending.

March against the cuts in London on April 2, 2011  (gwydionwilliams)
March against the cuts in London on April 2, 2011 (gwydionwilliams)
Pascal Salin

PARIS – It would have been only logical that the recent financial crisis and the consequences we are witnessing today should have radically challenged the prevailing ideas on economics. But it is fascinating to see to what extent people can stick to erroneous beliefs. The strange and enduring success of anti-Capitalist ideas after the spectacular collapse of communist and socialist societies illustrates this tendency all too well!

The ideas inspired by Keynesian theories are dangerously dominant. Despite the fact that they give no coherent explanation of the appearance of crises, everybody defined their "policies to end the crisis' according to Keynes' ideas. The main point is simple: if there is an economic crisis, if economic growth is weak and unemployment rate high, the right thing to do is to increase the global demand, which implies in particular to increase public spending. Every government favors this method, since it enables them to justify any demagogic spending, any waste of money.

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Geopolitics

AMLO Power Grab: Mexico's Electoral Reform Would Make Machiavelli Proud

Mexican President Andrés Manuel López Obrador, aka AMLO, says his plans to reform the electoral system are a way to save taxpayer money. A closer look tells a different story.

President Andres Manuel Lopez Obrador of Mexico votes

Luis Rubio

OpEd-

MEXICO CITY — For supporters of Mexico's President Andrés Manuel López Obrador (AMLO) the goal is clear: to keep power beyond the 2024 general election, at any price. Finally, the engineers of the much-touted Fourth Transformation, ALMO's 2018 campaign promise to do away with the privileged abuses that have plagued Mexican politics for decades, are showing their colors.

Current electoral laws date back to the 1990s, when unending electoral disputes were a constant of every voting round and impeded effective governance in numerous states and districts. The National Electoral Institute (INE) and its predecessor, the IFE, were created to solve once and for all those endemic disputes.

Their promoters hoped Mexico could expect a more honest future, with the electoral question resolved. The 2006 presidential elections, which included AMLO as a recalcitrant loser, showed this was hoping for too much. That election is also, remotely, at the source of the president's new electoral initiative.

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