The history of economic thought has affected the world economy and even many political events. Just as the Keynesian view, which was the major driver of public power for the economy, led to important changes, Friedman’s market-based perspective influenced economies and, by providing the necessary political transformations, has brought the world economy more integrated and indisputably provided an increase in global peace and prosperity.
Except for continental Europe and Japan, which have an important place in public spending and indebtedness economies, there are still those who see public spending as medicine, even though developed countries have largely recovered from the crisis. For example, Krugman, who said that the internet could be as effective as fax when one of them first came out, is one of the most important keynesian economists.
Now, let’s show with a graph compiled from the data of the US economy that the discussion does not have much of an exacerbation.
The periods when public spending is a solution in the US economy are long periods of slowdown. On the other hand, we see how the view that sees it as a problem affects the trend in growth. Of course, some historical processes can be accepted to be effective here, and the numbers are clear enough to prevent this from having an official effect. Can other situations apply in different economies? Of course, we can argue that, after the Industrial Revolution, those fates are and will not be able to hold stitches.