Jennifer Burns

And you seem like you have a lot more authority. And so math becomes really twinned into Keynesian economics.

Right. And we can create a model. And so we can say, okay, in the model, the interest rate is here and taxes are here. So let's play with government spending. Let's make it up. Let's make it down. And then we can get an estimation. It'll spit out. Here's predicted GDP.

Right. And we can create a model. And so we can say, okay, in the model, the interest rate is here and taxes are here. So let's play with government spending. Let's make it up. Let's make it down. And then we can get an estimation. It'll spit out. Here's predicted GDP.

Right. And we can create a model. And so we can say, okay, in the model, the interest rate is here and taxes are here. So let's play with government spending. Let's make it up. Let's make it down. And then we can get an estimation. It'll spit out. Here's predicted GDP.

So the other piece of the Keynesian revolution is it really gets people thinking kind of holistically about the economy as one conceptual unit. And you then have... what Paul Samuelson will end up calling the neoclassical synthesis. And this is still in economics today. If you take micro, you're going to get supply and demand, scarcity, marginal analysis.

So the other piece of the Keynesian revolution is it really gets people thinking kind of holistically about the economy as one conceptual unit. And you then have... what Paul Samuelson will end up calling the neoclassical synthesis. And this is still in economics today. If you take micro, you're going to get supply and demand, scarcity, marginal analysis.

So the other piece of the Keynesian revolution is it really gets people thinking kind of holistically about the economy as one conceptual unit. And you then have... what Paul Samuelson will end up calling the neoclassical synthesis. And this is still in economics today. If you take micro, you're going to get supply and demand, scarcity, marginal analysis.

If you take macro, you're going to get a very different approach. And that's more Keynesian based. And so the idea is that, and this makes sense. I mean, you can think of this from statistics, right? The way things act individually versus when they're all added together can be very different.

If you take macro, you're going to get a very different approach. And that's more Keynesian based. And so the idea is that, and this makes sense. I mean, you can think of this from statistics, right? The way things act individually versus when they're all added together can be very different.

If you take macro, you're going to get a very different approach. And that's more Keynesian based. And so the idea is that, and this makes sense. I mean, you can think of this from statistics, right? The way things act individually versus when they're all added together can be very different.

So there's this kind of uneasy piece where economists are using kind of neoclassical tools to analyze individual behavior and individual market behavior, and they're shifting to a different paradigm when they think about the economy as a whole. And in this paradigm of the economy as a whole, the federal budget, the taxing and spending power of the federal government become paramount.

So there's this kind of uneasy piece where economists are using kind of neoclassical tools to analyze individual behavior and individual market behavior, and they're shifting to a different paradigm when they think about the economy as a whole. And in this paradigm of the economy as a whole, the federal budget, the taxing and spending power of the federal government become paramount.

So there's this kind of uneasy piece where economists are using kind of neoclassical tools to analyze individual behavior and individual market behavior, and they're shifting to a different paradigm when they think about the economy as a whole. And in this paradigm of the economy as a whole, the federal budget, the taxing and spending power of the federal government become paramount.

And that is called the fiscal revolution. And that's really the essence of Keynesianism. But the key thing to remember is that Keynesianism and Keynes are different. And there's this famous episode where John Maynard Keynes comes to D.C. and he goes to dinner. And he comes back and he says to one of his friends in London, he says, oh yeah, it was really interesting.

And that is called the fiscal revolution. And that's really the essence of Keynesianism. But the key thing to remember is that Keynesianism and Keynes are different. And there's this famous episode where John Maynard Keynes comes to D.C. and he goes to dinner. And he comes back and he says to one of his friends in London, he says, oh yeah, it was really interesting.

And that is called the fiscal revolution. And that's really the essence of Keynesianism. But the key thing to remember is that Keynesianism and Keynes are different. And there's this famous episode where John Maynard Keynes comes to D.C. and he goes to dinner. And he comes back and he says to one of his friends in London, he says, oh yeah, it was really interesting.

I was the only non-Keynesian there. You know?

I was the only non-Keynesian there. You know?

I was the only non-Keynesian there. You know?

Yes. So the Austrians and the Chicago schools see economic – prosperity and growth comes from individual initiative, individual entrepreneurship, kind of private sources. The private market is what drives economic growth, not the public sector. And so for Friedman, then the question is, What is the government's role?