chapter  5
Keynes’s Influence on Public Policy: A Conservative’s View
ByNorman B. Ture
Pages 6

Keynesianism has exerted a significantly antiprogressive influence on public policy. The consequences of Keynesian efforts to fine-tune aggregate economic performance have been to entrench an inflationary bias in economic policy and economic outcomes, along with increasing biases against market-directed personal effort and saving and investment. An outgrowth of the Keynesian concentration on management of aggregate demand was the notion that there is some optimum mix of fiscal and monetary policies that will effectuate a pursuit of the short-run stabilization and the long-run growth-in-capacity objectives. In the Keynesian policy scenario, the conditions of aggregate supply are treated as substantially unresponsive to public policy in either the short or long run. The conservative's basic policy objective is to improve the efficiency of market performance. For the most part, the conservative identifies the impediment to efficient market performance as one or another government intrusion, whether in the form of purchases of goods and services, transfer payments, regulations, tax laws, or monetary actions.