Is austerity the right step in a recession? Meet the 2 giants of thought

I am a bit of both, being Keynesian when it comes to education and infrastructure but then becoming somewhat ambivalent and almost sympathetic to the theories of Friedrich Hayek when it comes to other matters, notably some financial institutions and redundant government agencies.

Investments have to make sense, for the present or for the future but still must have a tangible purpose. Saving institutions just for the sake of saving them or because they are large is not justified when there is a crisis. Unfortunately, bankers and financiers can influence Washington pursuing their own narrow benefit rather than the nation’s.

Bailed-out banks are sitting on tons of cash and their lending policies are too stringent now.

There must be a surgical precision in expenditures, cuts, and in the coordination of a tax policy.