The Flaw in Fiscal Conservatives' Logic

The video explores new economic thinking, highlighting skepticism towards government intervention post-financial crisis. It discusses public resentment over government bailouts and the perception of government as an insurance agency for the powerful. The speaker examines Keynesian economics, emphasizing the government's unique ability to spend beyond its income to avoid economic stagnation. The discussion also touches on fiscal conservatism and regulatory capture, questioning the effectiveness of government actions. The video concludes with a mention of the book 'Maynard's Revenge'.

What is one reason people distrust government intervention after the financial crisis?

• The government increased taxes significantly.

• The government paid bonuses to polluters.

• The government reduced public services.

• The government failed to regulate the stock market.

According to the speaker, why should the government not be run like a household?

• Because it has the power to spend beyond its income.

• Because it can print its own money.

• Because it can borrow money indefinitely.

• Because it can control inflation directly.

What was Keynes' main concern regarding economic policy?

• That the world would face hyperinflation.

• That the world would experience a housing bubble.

• That the world would face a trade deficit.

• That the world would be stuck in stagnation.

What is regulatory capture?

• When the government takes over private companies.

• When industries control the agencies meant to regulate them.

• When the government imposes strict regulations on businesses.

• When businesses are free from any government regulation.

What is the speaker's view on the current administration's ability to bring change?

• Optimistic about significant reforms.

• Skeptical about its potential for change.

• Confident in its economic policies.

• Indifferent to its actions.