Destruction and keynesianism

[Pierre Lemieux]

Following Tuesday's tragic events, isn't it surprising that we don't hear much the Keynesian argument that repairs and reconstruction (plus, presumably, military purchases) will boost "aggregate demand" and pull the economy out of the recession it was drifting into? We even did not have to dig holes and refill them to boost aggregate demand as Keynes would have suggested, for some barbarians did the first part for us.
Is this because the Keynesians think that general pessimism (and the businessmen's animal spirits) will more than compensate for this increased demand? Or is it because nobody (except perhaps bank economists) really believes in Keynesianism anymore?

PIERRE LEMIEUX
Visiting Professor , Université du Québec à Hull
Co-director of the Groupe de Recherche Économie et Liberté (GREL)
Research Fellow, Independent Institute
http://www.pierrelemieux.org
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