No seguimento de Peso do Estado e Crescimento Económico, Keynesianism Doesn’t Mean Bigger Government?:
.. First, Keynes’s argument for why his view of fiscal policy need not mean a larger government ignores the incentives facing the politicians who must implement it. Those incentives would lead to a larger government. Second, Keynes called for the socialization of investment as part of a broader vision of how to prevent the crises that necessitate stimulus spending in the first place. The result of both arguments is larger government ..
.. regardless of what Keynes believed government should do, what it in fact will do is another matter .. by removing the preexisting moral and institutional constraints on deficit spending as a way to balance the economy, Keynes and the Keynesians unleashed the perverse incentives of the political process into policymaking. The problem with Keynes’s analysis is that he paid no attention to the real incentives facing politicians, who now had the green light to deficit-spend in the name of economic stability.
.. politicians continue to deficit-spend even during periods of economic growth because none wish to raise taxes or cut the flow of government benefits to their prospective voters. The result is exactly .. large and increasing deficits and debt, and a growing danger of higher levels of inflation to pay it off.
.. Keynes’s fiscal policy analysis .. requires that government play a more prominent role in allocating money for investment to avoid future recessions. This element of fiscal policy clearly calls for a bigger government.
The claim that Keynesianism doesn’t necessarily imply bigger government and greater debt is shown to be mistaken when we consider the implications of Keynes’s argument for countercyclical fiscal policy, the record of Keynesian policy in the last 50 years, and the broader context of his views on fiscal policy in The General Theory.