document_title: 50 First Dates

question_text: who plays the daughter in 50 first dates

text: 50 First Dates

text: Plot[edit]

text: Henry Roth is a veterinarian at Sea Life Park on the island of Oahu, Hawaii. He has a reputation of womanizing female tourists and does not display any interest in committing to a serious relationship. Henry's closest friends are Ula, a marijuana-smoking Islander; his assistant Alexa, whose gender is unclear; Willy, his pet African penguin; and Jocko, a walrus.

text: One day Henry’s boat breaks down while he is sailing around Oahu. He goes to the Hukilau Café to wait for the Coast Guard. There he sees a young woman named Lucy Whitmore, who makes architectural art with her waffles. Henry thinks she is a local, which prevents him from introducing himself, but the next day he comes back. Lucy and he hit it off instantly and she asks him to meet her again tomorrow morning.

text: However, when Henry goes back to the café the following day, Lucy does not have any recollection of ever meeting him. The restaurant owner Sue (Amy Hill) explains to Henry that the year before, Lucy and her father Marlin went up to the North Shore to pick a pineapple for his birthday. On the way back, they had a serious car accident that left Lucy with anterograde amnesia and she wakes up every morning thinking it is Sunday, October 13, of last year.

text: To spare Lucy the heartbreak of reliving the accident every day, Marlin and Doug, Lucy's lisping steroid-addicted brother, re-enact Marlin's birthday by following a script, including putting out the Sunday newspaper, refilling Lucy's shampoo bottles, re-watching the same Minnesota Vikings game, and re-watching the movie The Sixth Sense where Marlin and Doug halfheartedly say, "Wow. Didn't see that coming," during the famous plot-twist.

text: Despite Sue's warning, Henry invites Lucy to have breakfast with him. Eventually she does, but it ends poorly when Henry unintentionally hurts Lucy’s feelings. He follows her home to apologize where Marlin and Doug instruct Henry to leave Lucy alone. Henry begins concocting ways to run into Lucy on the following days, such as pretending to have car trouble, creating a fake road block, or by having Ula beat him up. Eventually, Marlin and Doug figure this out due to Lucy singing The Beach Boys' "Wouldn't It Be Nice" on the days when she meets Henry.

text: One day, as Henry is about to sit with Lucy at breakfast, she notices a police officer writing her a ticket for her expired plates. Lucy attempts to argue that they are not yet expired, and takes a newspaper to prove herself, but sees that the date on all the newspapers is not October 13 as she thought. Lucy rushes home, and Marlin and Doug are forced to admit their ruse when she confronts them (and presumably not for the first time; when Marlin sees Lucy's frantic behavior as her truck pulls up to the house, he immediately realizes what happened and loudly announces to Doug that Lucy "had a bad day").

text: Henry comes up with an idea to make a video explaining to Lucy her accident and their relationship. Although Lucy is upset over understanding about her accident and memory loss, Henry believes that she is more upset realizing her life is a lie every day. Because of this, Henry, Marlin and Doug show Lucy the tape every morning and help her spend her days by picking up where the tape says she left off. She spends more time with Henry and goes to see some of her old friends. Lucy decides to erase Henry completely from her life after learning of his decision not to take a sailing trip to Bristol Bay to study walruses, something he has been planning for the past 10 years. Although Henry would rather spend that year making Lucy fall in love with him everyday rather than go on the sailing trip, Lucy is convinced she is a burden on him and is preventing Henry from really living his life. Henry reluctantly helps Lucy destroy her journal entries of their relationship.

text: A few weeks later, Henry is preparing to leave for his sailing trip. Before he departs, Marlin tells him that Lucy is now living at the brain institute and teaching an art class. He also tells him that she sings. Then he gives Henry a Beach Boys CD. Listening to the CD, Henry becomes emotional and curses Marlin for giving him the CD and causing him to miss Lucy. He then remembers that Marlin once told him that Lucy only sings after she meets him. Concluding that Lucy remembers him, he returns home. Henry rushes to the brain institute where Lucy now resides and asks if she knows who he is. Lucy says she does not know him but shows him the pictures she has painted of him, saying she dreams about him every night.

text: Some time later, Lucy wakes up and plays a video tape marked "Good Morning Lucy." It again informs her of her accident, but ends with her and Henry’s wedding. On the tape, Henry says to put a jacket on and come have breakfast when she is ready. Lucy then sees that she is on Henry’s boat, which finally made it to Alaska. She goes up on deck and meets Marlin, Henry and their daughter, Nicole.

text: Cast[edit]

text:
Adam Sandler as Henry Roth, a marine veterinarian with a talent for wooing women and a fear of commitment
Drew Barrymore as Lucy Whitmore, Henry's love interest with short-term memory loss
Rob Schneider as Ula, Henry's marijuana-smoking, native Hawaiian assistant and best friend; he is unhappily married to an overweight native woman and has five young, athletically talented children
Sean Astin as Doug Whitmore, Lucy's older brother, a lisping, steroid-dependent bodybuilder
Blake Clark as Marlin Whitmore, Lucy's widowed father, a professional fisherman
Lusia Strus as Alexa, Henry's ambiguously gendered assistant
Dan Aykroyd as Dr. Joseph Keats, a physician specializing in brain disorders
Amy Hill as Sue, the Hukilau café manager and friend of Lucy and her late mother
Pomaika'i Brown as Nick, the Hukilau café chef.
Allen Covert as Ten-Second Tom, a hospital patient with severe memory impairment (reprised as 220 Tom in Blended)
Missi Pyle as Noreen, a tax attorney Henry meets at a bar but then tries to fix up with Alexa
Maya Rudolph as Stacy, pregnant friend of Lucy's at beach party
Kevin James as Factory worker
Lynn Collins as Linda
Joshua Seth (uncredited) as a painter
Greg Cipes (uncredited) as a painter
Dee Bradley Baker (uncredited) as a man at the restaurant
Scott Menville (uncredited) as a man at the restaurant
Jessica DiCicco (uncredited) as a teenager at the zoo

text: Production[edit]

text: The film was originally titled "50 First Kisses".[2] Drew Barrymore, who knew of the original script, wrote a letter to Sandler and suggested it as their next film together. In 2014, Barrymore said it had been more of a drama and was re-written by Sandler and they reworked it into more of a comedy.[3]

text: Locations[edit]

text: Most of the film was shot on location in Kaneohe, Kaʻaʻawa, Wahiawā, Makapuʻu, and Waimānalo, Oahu, as well as in Kāne'ohe Bay. Due to the high cost of filming outside of the studio zone, some interior scenes (such as inside the Whitmore residence) were shot on sets in Los Angeles carefully decorated to look like they were in Hawaii.[4]

text: The walrus tank is actually in Six Flags Discovery Kingdom in Vallejo, California, and the golf course is the Ocean Trails Golf Club in Rancho Palos Verdes, California.

text: Critical reception [edit]

text: The film received mixed reviews from critics. Rotten Tomatoes gives the film a score of 48% based on 172 reviews, and the site's consensus states [that the] "Gross-out humor overwhelms the easy chemistry between Adam Sandler and Drew Barrymore, who bring some energy and yucks to this tale of a girl with short-term memory loss and the guy who tries to get her to love him."[5]

text: Critics who enjoyed the film (such as The New York Times reviewer A.O. Scott) praised the uplifting story while lamenting the seemingly excessive and incongruous amount of crude humor and drug references.[6] Roger Ebert gave it three out of four stars, saying "The movie is sort of an experiment for Sandler. He reveals the warm side of his personality, and leaves behind the hostility, anger and gross-out humor... The movie doesn't have the complexity and depth of Groundhog Day... but as entertainment it's ingratiating and lovable."[7]

text: Sandler and Barrymore won the award for Best On-Screen Team at the MTV Movie Awards. The two actors, who had previously worked together in the popular film The Wedding Singer, are said to regard 50 First Dates as one of their favorite personal efforts.[citation needed]

text: Fictional medical condition[edit]

text: In an article in the BMJ on depictions of amnesia in film, clinical neuropsychologist Sallie Baxendale writes that 50 First Dates "maintains a venerable movie tradition of portraying an amnesic syndrome that bears no relation to any known neurological or psychiatric condition".[8] A 2010 article in the Daily Mail newspaper claimed a similar condition afflicted a UK woman who cannot remember anything after 1994 as a result of two car accidents (one in 1985 and the other in 1990).[9] The article quotes Dr. Peter Nestor, a neuroscience specialist at Cambridge University, who said "It is reasonably rare to have this kind of amnesia but it does exist."

text: In 2010, researchers described a woman who developed the kind of memory impairment after she was involved in a car accident. She described that her memory was normal for events on the same day and that overnight memories for the previous day were lost. However, a neuropsychological test did reveal some improvement in recall for tasks which she had, unknowingly, performed the previous day. Though the woman claimed not to have seen 50 First Dates prior to her 2005 accident (but has watched it several times since), she stated that Drew Barrymore was her favorite actress, leading researchers to conclude that her condition might have been influenced by some knowledge of the film's plot, and its impact upon her understanding of amnesia.[10] Similarly, in the Truman Show delusion, patients believe that they are living inside a reality television show, as in the 1998 film The Truman Show.

text: In July 2015, two people were discovered to be afflicted with a form of anterograde amnesia that resembles the one depicted in the movie. One is a man in the UK, originally from Germany. He wakes up every day thinking it is March 14, 2005, because that is the day he underwent anesthesia for a dental procedure which led to this condition as a rare, unexplained complication.[11] The other is a woman named Nikki Pegram who believes every day is October 15, 2014. Nikki used to be a pub manager and was visiting Kettering General Hospital for a kickboxing injury when she slipped and hit her head on a metal pole.[12]

text: Ten-Second Tom's ten-second memory is similar to the second-to-second consciousness of Clive Wearing, a British man whose long- and short-term memory centers were destroyed from a viral infection of the brain caused by the herpes virus.

text: Real world application[edit]

text: The Hebrew Home of Riverdale, New York has started an experimental program in which residents with early dementia watch a video every morning in which they see comforting messages and reminders from family members that they may still know. After April 2015, the program may include more residents. Robert Abrams of NewYork–Presbyterian Hospital considered this idea "both innovative and thoughtful." Charlotte Dell, director of social services for the home, said the program was inspired by 50 First Dates.[13]

text: Soundtrack[edit]

text:
50 First Dates: Love songs from the Original Motion Picture

Soundtrack album by Various Artists

Released
February 3, 2004 (2004-02-03)

Genre
Ska, reggae, new wave

Length
49:37

Label
Maverick

Producer
Nick Hexum

text: The soundtrack contains cover versions of songs that were originally recorded in the 1980s. This includes mostly reggae covers, due to their emphasized upbeat that gives a tropical or Hawaiian feel. It was a moderate commercial hit, reaching #30 on the Billboard 200 and #1 on the Top Soundtracks chart and Top Reggae Albums chart in the United States.

text: Despite being prominently featured in the film, neither Israel Kamakawiwoʻole's "Somewhere Over the Rainbow"/"What a Wonderful World" nor The Beach Boys' "Wouldn't It Be Nice" were included on the soundtrack.

text: The soundtrack was produced by 311's frontman, Nick Hexum. 311 provided a cover of The Cure's Lovesong for the soundtrack. It is heard over the film's end credits.

text:
No.
Title
Writer(s)
Artist
Length

1.
"Hold Me Now" (Thompson Twins)
Tom Bailey, Alannah Currie, Joe Leeway
Wayne Wonder
4:12

2.
"Lovesong" (The Cure)
Robert Smith, Simon Gallup, Porl Thompson, Boris Williams, Roger O'Donnell
311
3:28

3.
"Lips Like Sugar" (Echo & the Bunnymen)
Will Sergeant, Ian McCulloch, Les Pattinson
Seal featuring Mikey Dread
5:00

4.
"Your Love (L.O.V.E. Reggae Mix)" (The Outfield)
John Spinks
Wyclef Jean featuring Eve
4:13

5.
"Drive" (The Cars)
Ric Ocasek
Ziggy Marley of Ziggy Marley and the Melody Makers
4:26

6.
"True" (Spandau Ballet)
Gary Kemp
will.i.am & Fergie of The Black Eyed Peas
4:24

7.
"Slave to Love" (Roxy Music)
Ferry
Elan Atias
3:55

8.
"Every Breath You Take" (The Police)
Sting
UB40
3:55

9.
"The Ghost in You" (The Psychedelic Furs)
Richard Butler, Tim Butler
Mark McGrath of Sugar Ray
3:01

10.
"Friday I'm in Love" (The Cure)
Smith, Gallup, Thompson, Williams, Perry Bamonte
Dryden Mitchell of Alien Ant Farm
3:21

11.
"Breakfast in Bed" (Dusty Springfield)
Eddie Hinton, Donnie Fritts
Nicole Scherzinger of The Pussycat Dolls
3:36

12.
"I Melt With You" (Modern English)
Robbie Grey, Gary McDowell, Stephen Walker, Michael Conroy, Richard Brown
Jason Mraz
3:36

13.
"Forgetful Lucy"
Sandler, Allen Covert, Tim Herlihy
Adam Sandler
1:51

Total length:
49:37

text:
The Beach Boys – "Wouldn't It Be Nice"
The Cure – "Boys Don't Cry"
The English Beat – "Hands Off She's Mine"
The Flaming Lips – "Do You Realize??"
Wyclef Jean – "Baby"
Israel Kamakawiwo'ole – "Somewhere Over the Rainbow"/"What a Wonderful World" medley (Originally recorded by Judy Garland/Louis Armstrong)
The Maile Serenaders – "My Sweet Sweet"
The Makaha Sons of Ni'Ihau – "Aloha Ka Manini"
Manfred Mann – "Blinded by the Light"
Bob Marley & The Wailers – "Could You Be Loved" and "Is This Love"
Paul McCartney & Linda McCartney – "Another Day"
No Doubt – "Underneath It All"
O-Shen – "Throw Away The Gun"
Harve Presnell – "They Call the Wind Mariah"
Leon Redbone & Ringo Starr – "My Little Grass Shack In Kealakekua, Hawaii"
Adam Sandler and Rob Schneider – "Ula's Luau Song"
Snoop Dogg – "From tha Chuuuch to da Palace"
311 – "Amber" and "Rub A Dub"
Toots & the Maytals – "Pressure Drop"
The Ventures – "Hawaii Five-O"
Patty and Mildred Hill – "Happy Birthday to You"


document_title: Legal status of tattooing in the United States

question_text: how old do you have to be to get a tatto without parent consent

root

text: In the United States, there is no federal law regulating the practice of tattooing. However, all 50 states and the District of Columbia have statutory laws requiring a person receiving a tattoo be 18 years or older. This is partially based on the legal principle that a minor cannot enter into a legal contract or otherwise render informed consent for a procedure. Most states permit a person under the age of 18 to receive a tattoo with permission of a parent or guardian, but some states outright prohibit tattooing under a certain age regardless of permission, with the exception of medical necessity (such as markings placed for radiation therapy).

tag: p

text: In all jurisdictions, individual tattooists may also choose to place additional restrictions based on their own moral feelings, such as refusing any clients under a specific age even with parental consent despite it being legal, or limiting the type and/or location of where they are willing to tattoo (such as refusing any work around intimate parts of the body). They may additionally refuse to perform specific artwork, including if they merely find it inappropriate or offensive, or refuse to work on a client that they suspect may be intoxicated. Artists sometimes claim their personal business restrictions are a matter of law even when it is not true, so as to avoid arguments with clients.

text:
Legal Restrictions on Tattooing & Body Modification by State

State
Minimum Age (with parent/guardian consent)
Form of Parent/Guardian Consent
Notes & Exceptions
Intoxicated/Impaired Individuals
Area of Law/Type of Penalty
Licensing & Regulation
Relevant Statute(s) and Rules

Alabama
none specified[1]
informed written consent, signed in presence of the artist/service provider or their agent[1][2]
Ear piercing exempt from Alabama body art laws & rules.[2][3]
cannot be tattooed, branded, or pierced[1][2]
Violations of Alabama Tattoo & Body Piercing laws are a class c misdemeanor, punishable by a fine of up to $100 and/or up to 90 days imprisonment for each violation.[4]
Alabama's Department of Public Health licenses Tattoo, body piercing, & body art facilities, and sets standards for their operation.[5]
Individual tattoo artists, piercers, etc. require a permit.[2]

Ala. Code § 22-1-17A[3][6]
State Board of Health rules on Body Art Practices and Facilities.[2]

Alaska
18 (piercing excepted)[7]
parent/guardian must both give written consent and be present during the procedure[7]
Minors may be pierced with parental consent [7]
no restriction[8]

Alaska Stat. § 08.13.217[7]

Arizona
none specified[9]
parent/guardian must be physically present[9]
Minors can have their ears pierced with the written or verbal consent of a parent/guardian, can have procedures prescribed by a health care provider.[9]
no restriction[9]
Violations are a class 6 felony.[9]
There are no health regulations for tattoo shops in Arizona. [10]
Tattoos. Ariz. Rev. Stat. § 13-3721[9]

Arkansas
16[11]
parent/guardian must both give written consent and be physically present[12]
none specified[12]
cannot be tattooed, branded, or pierced.[12]

Ark. Stat. Ann. §§ 20-27-1501 et seq.[12]

California
18 (piercing excepted)[13][14]
parent/guardian must be present during procedure
Minors may have their ears pierced with parental consent.[15] They may be pierced elsewhere with parental consent, but not on their genitals or nipples. Permanent cosmetics are permitted on nipples, when done by a cosmetic technician and with parental consent.[14]
no restriction

Body Art. Cal. Health & Safety Code § 119300 to 119328[6][15]
Cal. Penal Code 653[13]

Colorado
18 Express written consent of parent or guardian[16]
parent/guardian must be present during procedure
Persons who are "noticeably impaired" cannot have body art procedures[16]

Body Artists. Colo. Rev. Stat. § 25-4-2101 to 2103[6]

Connecticut
none specified
permission of parent or guardian[17][18]
Minors may have their ears pierced without parental consent[17]
Tattooing may only be performed by physicians, or by registered nurses & technicians working under the supervision of a physician.[18]

no restrictions

Conn. Gen. Stat. §19a-92a,[6][18]
Conn. Gen. Stat. §19a-92g[6][17]

District of Columbia
18 (ear piercing excepted)[19]
written consent (for ear piercing)[19]
minors may have their ears pierced with written parental consent[19]
no restrictions[19]

Body Artists. DC Code § 47-2853.76d[6][19]

Delaware
18[20]
notarized written consent to the specific procedure[20]
none specified[20]
cannot be tattooed, branded, or body pierced[20]

Del. Code Ann. Title 11, Ch 5 §1114(a)[6][20]
Del. Code Ann. Title 16, Ch 2 §122(3)(w)[6]

Florida
16[21]
Must be accompanied by parent or guardian who can show proof of guardianship, both parent and minor must present photo ID, and a consent form must be notarized.[21]
for medical or dental purposes by a licensed physician or dentist[21]
no restriction

Fla. Stat. § 381.00787[6]
Fla. Stat. §381.0775 et seq.[6] Fla. Stat. §381.075[6]

Georgia
18 (body piercing excepted)[22]
For body piercing: prior written consent of parent/guardian[23]
Minors may have their ears pierced without parental consent[23]
Minors may be body pierced with written parental consent[23]
Physicians and Osteopaths or technicians working under their direct supervision can give minors tattoos or produce scars for "medical or cosmetic purposes."[22]
No one can be tattooed within an inch of their eye socket.[24]

no restrictions

Ga. Code § 31-40-1 to 31-40-10[6]
Ga. Code § 16-12-5[6]
Ga. Code § 16-5-71.1[6]

Hawaii
none specified[25]
written consent of parent/guardian[25]

Hawaii Rev. Stat. § 321-13[6]
Hawaii Rev. Stat. § 321-379[6]

Idaho
18[26]
Written informed consent of parent/guardian, executed in the presence of the person performing the procedure, or their agent/employee.[26]
Minors can have their ears pierced without parental consent.[6]
Piercing for medical procedures exempt.[6]

no restrictions

Idaho Code § 18-1523 (2004)[6]

Illinois
18 (body piercings excepted)[27]
Written consent of parent/guardian (for body piercings)[27]
Minors cannot be present in places where tattooing or body piercing is done except in the presence of a parent/guardian.[27]
Minors can have their ears pierced without parent/guardian consent.[27]

no restrictions

Ill. Stat. 720 §5/12-10.1[6]
Ill. Stat. 410 §54/1 t0 54/999[6]

Indiana
none specified[28]
Parent/guardian must both be present during the procedure and provide written permission.[28]
Minors may have their ears pierced without parental consent.[28]
no restrictions

Ind. Code Ann. §35-42-2-7[6][28]
Ind. Code Ann. §16-19-3-4.1[6][29]

Iowa
18[30]
n/a - minors cannot be tattooed[30]
Body piercing is not regulated by state law in Iowa, however county or city laws may regulate it.[31]
no restrictions

Iowa Code §135.37[6]
Iowa Code §135.37[6]

Kansas
16[32]
Parent/guardian must give written consent, written consent must be notarized, and the parent/guardian must be present during the procedure.[32]
Minors may have their ears pierced[33]
no restrictions

Kan. Stat. Ann. §65-1953[6]
Kan. Stat. Ann. §65-1940 to 65-1954[6]

Kentucky
16
Parent/guardian must give written, notarized consent.[34]
none (ear piercing also requires written, notarized consent).[35]

Ky. Rev. Stat. §211.760[6]
Ky. Rev. Stat. §194A.050; 211.760[6]

Louisiana
16
Parent or guardian must consent, and their presence during the procedure is required for tattoos, but not for body piercings.[36]

no restrictions

La. Rev. Stat. Ann. §14:93.2[6]
La. Rev. Stat. Ann. § 40:2831 et seq.[6]

Maine
18 (piercings excepted)[37]
For body piercings: prior legal consent of parent/guardian.[38]
Maine law does not require parent/guardian consent for ear piercing[39]
no restrictions

Me. Rev. Stat. Ann. Title 32 § 4201-4329[6]

Maryland
none specified[40]
written consent, which must be retained for 3 years.
Piercing of the ear lobe is exempt[41]
no restriction
Health Department Regulations
A license is not required, but any person performing tattooing or piercing must comply with all the relevant health code regulations[40]
COMAR 10.06.01.02 and 10.06.01.06

Massachusetts
18 (except body piercing other than genitalia)[42]
Minors cannot receive tattoo, branding, or scarification at all. For piercing of areas other than the genitalia, a parent may provide identification and sign the consent document.[42]
Physicians performing for treatment reasons and ear piercing are exempt from regulation.[42]
no restriction
County Health Department regulates body art, but all follow a model regulation set by the state.
Artists must have a permit, and establishments are subject to following specific health department regulations[42]
Model Regulations for Body Art Establishments[42]

Michigan
none specified[43]
Written, informed consent of parent/guardian. Must be executed (signed) in the presences of the person performing the procedure, or their employee.[43]

cannot be tattooed, branded, or body pierced.[43]

Mich. Comp. Laws § 333.13101 to 333.13112[44]

Minnesota
18 (piercings excepted)[45]
For piercings: presence of parent/guardian and a consent form are both required.[45]
Minors cannot be tattooed. They can be body pierced, but not in the nipples or genitals. Branding, scarification, suspension, subdermal implantation, microdermal, and tongue bifurcation are also prohibited for minors.[45]
cannot have any body art procedures.[45]

Minnesota Statutes 146B.07[45]

Mississippi
18
n/a - minors cannot be tattooed
piercing also prohibited except for the outer perimeter or lobe of the ear.
no restriction

Miss.Code Ann. §73-61

Missouri
none specified[46]
For both piercings and tattoos, parent/guardian must sign written consent in the presence of the person performing the procedure, or their employee.[46]

cannot be tattooed, branded or body pierced.[46]
violations are a misdemeanor, punishable with a fine of up to $500 (more for repeat offenses)[46]
The state director of the division of professional registration licenses all body artists, and sets rules & regulations for the operation of body art establishments.[47]
Mo. Rev. Stat. §324.520[46]

Montana
none specified[48]
Parent or guardian must give "explicit, in-person" consent.[48] Montana administrative rules also require that the parent/guardian be present throughout the procedure.[49]

cannot be tattooed or body pierced.[49]
A person who tattoos or body pierces a minor without parent/guardian consent is guilty of Unlawful transactions with children, punishable by a fine of up to $500 or six months in county jail, or both.[48]
Other violations of Montana body art laws are a misdemeanor, with punishments ranging from a fine of $50–100 for a first offense to $300 and/or 90 days in county jail for third and subsequent offense.[50]

Montana's Department of Health and Safety licenses and regulates body art establishments.[51] Local health boards may establish their own licensing and regulatory schemes in lieu of the state department's.[52]
Mont. Code Ann. §45-5-623[48]
Mont. Code Ann. §50-48-101 to 110[53]
Mont. Code Ann. §50-48-201 to 209[54]

Nebraska
none specified[55]
written consent, must be present during procedure
Piercing does not include the external parts of the ear[56]
No restrictions

Nebraska Revised Statute 38-1008, 38-1009, 38-1010, 38-1011, 38-1060, 38-10,165

Nevada
n/a[6]
n/a[6]
Nevada state law does not regulate tattoos, piercings, or other body art. Regional health districts may regulate the practice. The southern Nevada Health District, for example, does not allow minors below the age of 14 to be tattooed, and requires a parent or guardian to provide written consent and be present during the procedure for 14- to 18-year-olds. The southern Nevada district also bans tattoos on those who are under the influence of drugs or alcohol.[57]
n/a[6]

n/a[6]

New Hampshire
18 (piercings excepted)[58]
For piercings: parent/guardian must both sign written consent and be present during the procedure.
Minors cannot be tattooed or branded. They may be pierced with parent/guardian consent.[58] Minors may have their ears pierced without parent/guardian consent.[59]
no restrictions

N.H. Rev. Stat. Ann. § 314[6]

New Jersey
none specified[60]
written permission of parent/guardian is required for tattooing and body piercing.[60]
Parent/guardian must be present and sign written consent for ear piercings as well as for body piercing. Minors cannot have genital piercings even with parent/guardian consent.[61]
no restrictions
no restrictions
no restrictions
N.J. Stat. Ann. §2C:40-21
N.J.A.C. 8:27-1 et seq.
N.J. Stat. Ann. §26-1A-7[6]

New Mexico
none specified[62]
Written consent and presence during the procedure.
Medical procedures by physicians and ear piercing are exempt[63]
no restrictions
Administrative Regulations set by the Board of Barbers and Cosmetologists
All body artists are required to be licensed through the state, and are subject to regulations from the Board
Body Art Safe Practices Act. N.M. Stat. Ann. § 61-17B et seq.,[63] N.M. Administrative Code 16.36 et seq.[62]

New York
18 (piercings excepted) [64]
Minors cannot be tattooed with parent/guardian consent. For piercings: parent/guardian must give written consent, signed in presence of the body artist or body art establishment owner.[65]
Written parental consent is not required for ear piercings.[66]
no restrictions

New York Public Health Law, Article 4-A[6][65]
N.Y. Public Health Law §460-466[6]
N.Y. Penal Law § 260.21[6]

North Carolina
18 (piercings excepted)[67]
Minors cannot be tattooed, even with parent/guardian consent. "Prior consent" of parent/guardian is required for body piercings.[67]
Minors may have their ears pierced without parental consent.[67]
no restrictions

N.C. Gen. Stat. § 130A-283[68]
N.C. Gen. Stat. § 14-400[69]

North Dakota
none specified[70]
Parent/guardian must be present during the procedure and give written consent.[70]

cannot get tattoos or other body art[71]

N.D. Code §23-01-35[72]
N.D. Code §12.1-31-13[6][70]

Ohio
none specified[73]
Parent/guardian must both sign a consent form and "appear in person at the business at the time the procedure is performed."[73]
none - parent/guardian consent and presence is also required for ear piercings.[73]
no restrictions

Ohio Rev. Code Ann. §3730.01 to 3730.99[6][73]

Oklahoma
18 (piercings excepted)[74]
Minors cannot be tattooed, even with parent/guardian consent. For piercings: parent/guardian must both give written consent and be present during the procedure.[74]
Ear piercing is not governed/restricted by Oklahoma law.[74]
Scleral tattooing is illegal.[74]

cannot be tattooed.[74]

Okla. Stat. Title 21 §842.1, 842.2, 842.3[6]

Oregon
18 (piercings excepted)[75]
For piercings: parent/guardian must give written consent and present proof of identity.[76][77]
Minors can only be tattooed with the authorization of a physician.[75]
Scarification and dermal implants are prohibited[78]
Persons with sunburns or skin diseases or disorders cannot be tattooed or pierced.[75][77]
Minors cannot be pierced on the genitals or nipples, even with parent/guardian consent.[76]
Piercing on testes, deep shaft (corpus cavernosa), uvula, eyelids and sub-clavicle are all prohibited.[77]

cannot be tattooed or pierced.[75][77]
Violations of Oregon body art laws are a misdemeanor.[79]
Violations of Health Licensing Office rules are fined (various amounts).[80]

Both body artists and body art establishments are licensed by the Oregon Health Licensing Office.[81] With the assistance of a Board of Body Art practitioners, the Health Licensing Office also sets detailed rules and regulations for body art.[82]
Or. Rev. Stat. § 690.350 et seq
Or. Rev. Stat. § 690.401 to 410
Or. Rev. Stat. § 679.500[6]
Health Licensing Office Rules, especially Divisions 900, 905, 915 & 920[82]

Pennsylvania
none specified[83]
parent/guardian must both give consent and be present during the procedure.[83]

no restrictions

Pa. Cons. Stat. Title 18 § 6311[6][83]

Rhode Island
18 (piercings excepted)[84][85]
Minors cannot be tattooed.[84] For piercings: parent/guardian must both give consent and be present for the procedure.[85]

no restrictions
Tattooing a minor is a criminal offense (misdemeanor), maximum fine $300[84]
Tattooing and body art are regulated by the department of health, artists must be registered.[85]
RI Gen L § 23-1-39[85]
RI Gen L § 11-9-15[84]

South Carolina
18 (piercings excepted)[86][87]
Minors cannot be tattooed.[86] For piercings: parent/guardian must either give written, notarized consent or be present during the procedure.[87]
Head, face, and neck tattoos are illegal.[86]
cannot be tattooed or body pierced[86][88]
Under the Health Code, persons violating restrictions on tattooing and body piercing are guilty of a misdemeanor. Upon conviction, they may be fined up to $2500 or imprisoned for a year, or both.[86][87]
Tattoo and body piercing facilities are regulated by the Department of Health and Environmental Control. Tattoo facilities are licensed, body piercing facilities require a permit, and artists must be registered[89][90]
S.C. Code § 44-32-10 to 44-32-120[88]
S.C. Code § 44-34-10 to 44-34-110[91]

South Dakota
none specified[92]
Parent/guardian must sign a consent form.[92]

cannot be tattooed or pierced[93][94]
Tattooing a minor is a class 2 misdemeanor.[95]
Tattooing and Body Piercing are governed by Department of Health rules.[96] Municipalities may set stricter regulations, and have the authority to license body artists.[95]
S.D. Codified Laws Ann. §26-10-19[92]
S.D. Laws § 9-34-17[95]

Tennessee
18 (piercings excepted)[97][98]
For tattoos that cover an existing tattoo (see Notes & Exceptions): Parent/Guardian must be present during the procedure.[97]
For piercings: Parent/Guardian must give written consent, be present during the procedure.[98]

Minors over the age of sixteen may be tattooed to cover up an existing tattoo, with parent/guardian consent.[97]

Minors who lie about their age to be tattooed are guilty of a "delinquent act," are required to pay a fine of $50–$250 and serve at least 20 hours of community service.[97]
Tattooing a minor is a class a misdemeanor,[97] breach of body piercing law is a class b misdemeanor.[99]

Tattoo artists and body piercers are licensed by the state department of health, tattoo shops require a certificate from the local health department.[100][101]
Tenn. Code §§ 62-38-201-310[102]

Texas
18 (piercings excepted)[103][104]
For body piercings and for covering existing tattoos (see Notes & Exceptions): Parent/guardian must be present during procedure, sign an affidavit[103][104]
Ear piercing is exempt from body piercing statutes[105]
Minors may, with parent/guardian consent, be tattooed to cover up an existing tattoo that has offensive, gang-related, or drug-related content, or "other words, symbols, or markings that the person's parent or guardian considers would be in the best interest of the person to cover"[103]
Tongue splitting prohibited.[106]

Cannot be tattooed or pierced.[103][107]
Misrepresenting one's age to get a tattoo, or to get a piercing without parental consent, is a class B misdemeanor[103][104]
Violations of Texas tattooing & body piercing statute are a Class A misdemeanor, with each day of violation counting as a separate offense.[108]
Health Commissioner can impose a fine of up to $5000 on artists & shops for each violation[109]

Tattoo artists and body piercers must be registered with the Texas Department of Health[110] Tattoo and body piercing shops must be licensed[111]
Texas Health and Safety Code Ann. §146[112]

Utah
none specified[113]
Parent/guardian must be present during the procedure, give written permission, and provide proof of identity.[113]
Parental consent not required by law for ear piercing[113]

Tattooing or body piercing a minor is a class b misdemeanor, shops can be fined up to $1000 for each violation.[113]

Utah Code Ann. §76-10-2201[6]

Vermont
none specified[114]

Tattooists and body piercers must be registered.[114]
Vt. Stat. Ann. Title 26 §4101 to 4109[6][115]

Virginia
none specified[116]
Parent/Guardian must be present during the procedure.[116]
Virginia law does not limit minors' ability to have their ears pierced.[116]

Tattooing or body piercing a minor is a class 1 misdemeanor[116]
Tattoo artists and body piercers, as well as the operators of tattoo and body piercing establishments, are licensed by the state.[117][118]
Civic/local governments are empowered to regulate tattoo and body piercing establishments.[119]

Va. Code §54.1-700 et seq.
Va. Code §15.2-912
Va. Code § 18.2-371.3.[6]

Washington
18 (piercings excepted)[120]

cannot have tattoos, body piercings, or other body art.[121]

Wash. Code §26.28.085[120]
Wash. Code § 18.300[122]
Wash. Code § 246-145-001 to 060[123]
Wash. Code §70.54[124]

West Virginia
none specified[125]
parent/guardian must give written consent[125]

All persons receiving a tattoo must attest they are not under the influence of drugs or alcohol.[125]

Tattoo shop owners and body piercing studios must register with local board of health, and must be registered as a business with the state[126][127][128]
W. Va. Code §16-37
W. Va. Code §16-38[129]

Wisconsin
18[130]
n/a (tattooing not permitted under 18)
Physicians in the course of professional practice are exempt
no restriction
Tattooing a minor or even offering to do so is subject to a fine of up to $200
Artists must be satisfy training requirements and obtain a license from the health department. Establishments are subject to inspection and licensing[131]
Wisconsin Statutes & Annotations 948.70 and 252.235

Wyoming
none specified[132]
Verbal consent, presence during procedure.[132]
Procedures performed under the supervision of a licensed physician, and piercing of the ear, do not count as body art for this law.
no restriction[132]
Misdemeanor criminal offense, punishable by fine and prison time[132]

Wyoming Statute §14-3-107[132]

tag: table


document_title: Keynesian economics

question_text: in macroeconomics the economy can best be understood through the use o

question_tokens: in macroeconomics the economy can best be understood through the use o

text: Keynesian economics

text: Historical context[edit]

text: Pre-Keynesian macroeconomics[edit]

text: Macroeconomics is the study of the factors applying to an economy as a whole, such as the overall price level, the interest rate, and the level of employment (or equivalently, of income/output measured in real terms).

text: The classical tradition of partial equilibrium theory had been to split the economy into separate markets, each of whose equilibrium conditions could be stated as a single equation determining a single variable. The theoretical apparatus of supply and demand curves developed by Fleeming Jenkin and Alfred Marshall provided a unified mathematical basis for this approach, which the Lausanne School generalized to general equilibrium theory.

text: For macroeconomics the relevant partial theories were: the Quantity theory of money determining  the price level, the classical theory of the interest rate, and for employment the condition referred to by Keynes as the ‘first postulate of classical economics’ stating that the wage is equal to the marginal product, which is a direct application of the marginalist principles developed during the nineteenth century (see The General Theory ). Keynes sought to supplant all three aspects of the classical theory.

text: Precursors of Keynesianism[edit]

text: Although Keynes's work was crystallized and given impetus by the advent of the Great Depression, it was part of a long-running debate within economics over the existence and nature of general gluts. A number of the policies Keynes advocated to address the Great Depression (notably government deficit spending at times of low private investment or consumption), and many of the theoretical ideas he proposed (effective demand, the multiplier, the paradox of thrift), had been advanced by various authors in the 19th and early 20th centuries. Keynes's unique contribution was to provide a general theory of these, which proved acceptable to the economic establishment.

text: An intellectual precursor of Keynesian economics was underconsumption theories associated with John Law, Thomas Malthus, the Birmingham School of Thomas Attwood,[7] and the American economists William Trufant Foster and Waddill Catchings, who were influential in the 1920s and 1930s. Underconsumptionists were, like Keynes after them, concerned with failure of aggregate demand to attain potential output, calling this "underconsumption" (focusing on the demand side), rather than "overproduction" (which would focus on the supply side), and advocating economic interventionism. Keynes specifically discussed underconsumption (which he wrote "under-consumption") in the General Theory, in Chapter 22, Section IV and Chapter 23, Section VII.

text: Numerous concepts were developed earlier and independently of Keynes by the Stockholm school during the 1930s; these accomplishments were described in a 1937 article, published in response to the 1936 General Theory, sharing the Swedish discoveries.[8]

text: The paradox of thrift was stated in 1892 by John M. Robertson in his The Fallacy of Saving, in earlier forms by mercantilist economists since the 16th century, and similar sentiments date to antiquity.[9][10]

text: Keynes’s early writings[edit]

text: In 1923 Keynes published his first contribution to economic theory, A Tract on Monetary Reform, whose point of view is classical but which incorporates ideas later to play a part in the General Theory : in particular, looking at the hyperinflation in European economies, he drew attention to the opportunity cost of holding money (identified with inflation rather than interest) and its influence on the velocity of circulation.[11]

text: In 1930 he published A Treatise on Money, intended as a comprehensive treatment of its subject ‘which would confirm his stature as a serious academic scholar, rather than just as the author of stinging polemics’,[12] and which marks a large step in the direction of his later views. In it he attributes unemployment to wage stickiness[13] and treats saving and investment as governed by independent decisions: the former varying positively with the interest rate,[14] the latter negatively.[15] The velocity of circulation is expressed as a function of the rate of interest.[16] He interpreted his treatment of liquidity as implying a purely monetary theory of interest.[17]

text: Keynes’s younger colleagues of the Cambridge Circus and Ralph Hawtrey believed that his arguments implicitly assumed full employment, and this influenced the direction of his subsequent work.[18] During 1933 he wrote essays on various economic topics “all of which are cast in terms of movement of output as a whole”.[19]

text: Development of The General Theory[edit]

text: At the time that Keynes's wrote the General Theory, it had been a tenet of mainstream economic thought that the economy would automatically revert to a state of general equilibrium: it had been assumed that, because the needs of consumers are always greater than the capacity of the producers to satisfy those needs, everything that is produced would eventually be consumed once the appropriate price was found for it. This perception is reflected in Say's law[20]  and in the writing of David Ricardo,[21] which state that individuals produce so that they can either consume what they have manufactured or sell their output so that they can buy someone else's output. This argument rests upon the assumption that if a surplus of goods or services exists, they would naturally drop in price to the point where they would be consumed.

text: Given the backdrop of high and persistent unemployment during the Great Depression, Keynes argued that there was no guarantee that the goods that individuals produce would be met with adequate effective demand, and periods of high unemployment could be expected, especially when the economy was contracting in size. He saw the economy as unable to maintain itself at full employment automatically, and believed that it was necessary for the government to step in and put purchasing power into the hands of the working population through government spending. Thus, according to Keynesian theory, some individually rational microeconomic-level actions such as not investing savings in the goods and services produced by the economy, if taken collectively by a large proportion of individuals and firms, can lead to outcomes wherein the economy operates below its potential output and growth rate.

text: Prior to Keynes, a situation in which aggregate demand for goods and services did not meet supply was referred to by classical economists as a general glut, although there was disagreement among them as to whether a general glut was possible.  Keynes argued that when a glut occurred, it was the over-reaction of producers and the laying off of workers that led to a fall in demand and perpetuated the problem. Keynesians therefore advocate an active stabilization policy to reduce the amplitude of the business cycle, which they rank among the most serious of economic problems. According to the theory, government spending can be used to increase aggregate demand, thus increasing economic activity, reducing unemployment and deflation.

text: Origins of the multiplier[edit]

text: The Liberal Party fought the 1929 General Election on a promise to ‘reduce levels of unemployment to normal within one year by utilising the stagnant labour force in vast schemes of national development’.[22] Lloyd George launched his campaign in March with a policy document ‘We can cure unemployment’ which made the tentative claim that ‘public works would lead to a second round of spending as the workers spent their wages’.[23] Two months later Keynes, then nearing completion of his Treatise on money,[24] and Hubert Henderson collaborated on a political pamphlet seeking to ‘provide academically respectable economic arguments’ for Lloyd George’s policies.[25] It was titled ‘Can Lloyd George do it?’ and endorsed the claim that ‘greater trade activity would make for greater trade activity... with a cumulative effect’.[26] This became the mechanism of the ‘ratio’ published by Richard Kahn in his 1931 paper ‘The relation of home investment to unemployment’,[27] described by Alvin Hansen as ‘one of the great landmarks of economic analysis’.[28] The ‘ratio’ was soon rechristened the ‘multiplier’ at Keynes’s suggestion.[29]

text: The multiplier of Kahn’s paper is based on a respending mechanism familiar nowadays from textbooks. Samuelson puts it as follows:

text: Let’s suppose that I hire unemployed resources to build a $1000 woodshed. My carpenters and lumber producers will get an extra $1000 of income... If they all have a marginal propensity to consume of 2/3, they will now spend $666.67 on new consumption goods. The producers of these goods will now have extra incomes... they in turn will spend $444.44... Thus an endless chain of secondary consumption respending  is set in motion by my primary  investment of $1000.[30]

text: Samuelson’s treatment closely follows Joan Robinson’s account of 1937[31] and is the main channel by which the multiplier has influenced Keynesian theory. It differs significantly from Kahn’s paper and even more from Keynes’s book.

text: The designation of the initial spending as ‘investment’ and the employment-creating respending as ‘consumption’ echoes Kahn faithfully, though he gives no reason why initial consumption or subsequent investment respending shouldn’t have exactly the same effects. Henry Hazlitt, who considered Keynes to be as much a culprit as Kahn and Samuelson, wrote that...

text: ... in connection with the multiplier (and indeed most of the time) what Keynes is referring to as “investment” really means any addition to spending for any purpose...  The word “investment” is being used in a Pickwickian, or Keynesian, sense.[32]

text: Kahn envisaged money as being passed from hand to hand, creating employment at each step, until it came to rest in a cul-de-sac  (Hansen’s term was ‘leakage’ ); the only culs-de-sac  he acknowledeged were imports and hoarding, although he also said that a rise in prices might dilute the multiplier effect. Jens Warming recognised that personal saving needed to be taken into consideration,[33] treating it as a ‘leakage’ (p214) while recognising on p217 that it might in fact be invested.

text: The textbook multiplier gives the impression that making society richer is the easiest thing in the world: the government just needs to decide to spend more. In Kahn’s paper it is harder. For him the initial expenditure must not be a diversion of funds from other uses but an increase in the total amount of expenditure taking place: something which would be impossible – if understood in real terms – under the classical theory that the level of expenditure is limited by the economy’s income/output. On p174 Kahn rejects the claim that the effect of public works will be at the expense of expenditure elsewhere, admitting that this might arise if the revenue was raised by taxation, but says that other means are available which have no such consequences. As an example he suggests that the money may be raised by borrowing from banks, since...

text: ... it is always within the power of the banking system to advance to the Government the cost of the roads without in any way affecting the flow of investment along the normal channels.

text: This assumes that banks are free to create resources to answer any demand. But Kahn adds that...

text: ... no such hypothesis is really necessary. For it will be demonstrated later on that, pari passu  with the building of roads, funds are released from various sources at precisely the rate that is required to pay the cost of the roads.

text: The demonstration relies on ‘Mr Meade’s relation’ (due to James Meade) asserting that the total amount of money which disappears into culs-de-sac  is equal to the original outlay,[34]  which in Kahn’s words “should bring relief and consolation to those who are worried about the monetary sources” (p189).

text: A respending multiplier had been proposed earlier by Hawtrey in a 1928 Treasury memorandum (‘with imports as the only leakage’), but the idea was discarded in his own subsequent writings.[35] Soon afterwards the Australian economist Lyndhurst Giblin published a multiplier analysis in a 1930 lecture (again with imports as the only leakage).[36] The idea itself was much older. Some Dutch mercantilists had believed in an infinite multiplier for military expenditure (assuming no import ‘leakage’), since...

text: ... a war could support itself for an unlimited period if only money remained in the country... For if money itself is “consumed”, this simply means that it passes into someone else’s possession, and this process may continue indefinitely.[37]

text: Multiplier doctrines had subsequently been expressed in more theoretical terms by the Dane Julius Wulff (1896), the Australian Alfred de Lissa (late 1890’s), the German/American Nicholas Johannsen (same period), and the Dane Fr. Johannsen (1925/1927).[38] Kahn himself said that the idea was given to him as a child by his father.[39]

text: Public policy debates[edit]

text: As the 1929 election approached ‘Keynes was becoming a strong public advocate of capital development’ as a public measure to alleviate unemployment.[40] Winston Churchill, the Conservative Chancellor, took the opposite view:

text: It is the orthodox Treasury dogma, steadfastly held... [that] very little additional employment and no permanent additional employment can, in fact, be created by State borrowing and State expenditure.[41]

text: Keynes pounced on a chink in the Treasury view. Cross-examining Sir Richard Hopkins, a Second Secretary in the Treasury, before the Macmillan Committee on Finance and Industry in 1930 he referred to the ‘first proposition’ that ‘schemes of capital development are of no use for reducing unemployment’ and asked whether ‘it would be a misunderstanding of the Treasury view to say that they hold to the first proposition’. Hopkins responded that ‘The first proposition goes much too far. The first proposition would ascribe to us an absolute and rigid dogma, would it not?’ [42]

text: Later the same year, speaking in a newly created Committee of Economists, Keynes tried to use Kahn’s emerging multiplier theory to argue for public works, ‘but Pigou’s and Henderson’s objections ensured that there was no sign of this in the final product’.[43] In 1933 he gave wider publicity to his support for Kahn’s multiplier in a series of articles titled ‘The road to prosperity’ in ‘The Times’ newspaper.[44]

text: A. C. Pigou was at the time the sole economics professor at Cambridge. He had a continuing interest in the subject of unemployment, having expressed the view in his popular Unemployment  (1913) that it was caused by ‘maladjustment between wage-rates and demand’ [45] – a view which Keynes may have shared prior to the years of the General Theory. Nor were his practical recommendations very different: ‘on many occasions in the thirties’ he – Pigou – ‘gave public support... to State action designed to stimulate employment’.[46] Where the two men differed is in the link between theory and practice. Keynes was seeking to build theoretical foundations to support his recommendations for public works while Pigou showed no disposition to move away from classical doctrine. Referring to him and Dennis Robertson, Keynes asked rhetorically: ‘Why do they insist on maintaining theories from which their own practical conclusions cannot possibly follow?’ [47]

text: The General Theory[edit]

text: The economic ideas that would become the basis for Keynesian economics were set forward in Keynes’s main work, The General Theory of Employment, Interest and Money (1936). Comprising nearly 400 pages, it was written when the world was in the throes of the Great Depression, during which unemployment rose to 25% in the United States and as high as 33% in some countries. It is almost wholly theoretical in nature, enlivened by occasional passages of satire and social commentary. The book had a profound impact on economic thought, and ever since it was published there has been debate over its meaning.

text: Keynes and classical economics[edit]

text: Keynes begins the General theory  with a summary of the classical theory of employment as he saw it, which he encapsulates in his formulation of Say’s Law as the dictum ‘Supply creates its own demand’.

text: Under the classical theory the wage rate is determined by the marginal productivity of labour, and as many people will be employed as are willing to take work at that rate. Unemployment may arise through friction or may be ‘voluntary’ in the sense that it arises from a refusal to accept employment owing to ‘legislation or social practices... or mere human obstinacy’, but ‘the classical postulates do not admit of the possibility of the third category’ which Keynes defines as ‘involuntary unemployment’.[48]

text: Keynes raises two objections to the classical theory’s assumption that ‘wage bargains... determine the real wage’. The first lies in the fact that ‘labour stipulates (within limits) for a money-wage rather than a real wage’. The second is that classical theory assumes that ‘the real wages of labour depend on the wage bargains which labour makes with the entrepreneurs’ whereas ‘if money wages change, one would have expected the classical school to argue that prices would change in almost the same proportion, leaving the real wage and the level of unemployment practically the same as before’.[49] Keynes considers the second objection to be the more fundamental, but his expectation concerning the classical school contradicts the Quantity theory of money and most commentators have concentrated on his first objection.

text: Keynesian unemployment[edit]

text: Saving and investment[edit]

text: Saving is that part of income not devoted to consumption, and consumption is that part of expenditure not allocated to investment, i.e. to durable goods.[50] Hence saving encompasses hoarding (the accumulation of income as cash) and the purchase of durable goods. The existence of net hoarding, or of a demand to hoard, is not admitted by the simplified liquidity preference model of the General Theory.

text: Once he has rejected the classical theory that unemployment is due to excessive wages, Keynes proposes his alternative based on the relationship between saving and investment. In his view unemployment arises whenever entrepreneurs’ incentive to invest fails to keep pace with society’s propensity to save (propensity  being one of Keynes’s synonyms for ‘demand’). The levels of saving and investment are necessarily equal, and income is therefore held down to a level at which the desire to save is no greater than the incentive to invest.

text: The incentive to invest arises from the interplay between the physical circumstances of production and psychological anticipations of future profitability; but once these things are given the incentive is independent of income and depends solely on the rate of interest r. Keynes designates its value as a function of r  as the ‘schedule of the marginal efficiency of capital’.[51]

text: The propensity to save behaves quite differently.[52] Saving is simply that part of income which is not devoted to consumption, and:

text: ...the prevailing psychological law seems to be that when aggregate income increases, consumption expenditure will also increase but to a somewhat lesser extent.[53]

text: Keynes adds that “this psychological law was of the utmost importance in the development of my own thought”.

text: Liquidity preference[edit]

text: Keynes viewed the money supply as one of the main determinants of the state of the real economy. The significance he attributed to it is one of the innovative features of his work, and was influential on the politically hostile monetarist school.

text: Money supply comes into play through the ‘liquidity preference’ function which specifies the amount of money people will choose to hold according to the state of the economy. In Keynes’s first (and simplest) account – that of Chapter 13 – liquidity preference is a function solely of the interest rate r  which is seen as the earnings forgone by holding wealth in liquid form: hence liquidity preference can be written L(r ) and in equilibrium must equal the externally fixed money supply M̂.

text: Keynes’s economic model[edit]

text: Money supply, saving and investment combine to determine the level of income as illustrated in the diagram[54], where the top graph shows money supply (on the vertical axis) against interest rate. M̂  determines the ruling interest rate r̂  through the liquidity preference function. The rate of interest determines the level of investment Î  through the schedule of the marginal efficiency of capital, shown as a blue curve in the lower graph. The red curves in the same diagram show what the propensities to save will be for different incomes Y ; and the income Ŷ  corresponding to the equilibrium state of the economy must be the one for which the implied level of saving at the established interest rate is equal to Î.

text: In Keynes’s more complicated liquidity preference theory (presented in Chapter 15) the demand for money depends on income as well as on the interest rate and the analysis becomes more complicated. Keynes never fully integrated his second liquidity preference doctrine with the rest of his theory, leaving the task to be completed by John Hicks: see the IS-LM model below.

text: Wage rigidity[edit]

text: Although Keynes rejects the classical explanation of unemployment based on wage rigidity it is not clear what effect the wage rate has on unemployment in his own system. He treats the wages of all workers as proportional to a single rate set by collective bargaining, and chooses his units so that this rate never appears separately in his discussion. It is present implicitly in those quantities which are expressed in wage units while being absent from those expressed in money terms. It is therefore difficult to see whether, and in what way, his results would differ for a different wage rate; nor is it entirely clear what he thought on the matter.

text: Remedies for unemployment[edit]

text: Monetary remedies[edit]

text: An increase in the money supply, according to Keynes’s theory, will lead to a drop in the interest rate and to an increase in the amount of investment which can be profitably undertaken, bringing with it an increase in total income.

text: Fiscal remedies[edit]

text: Keynes’s name is associated with fiscal rather than monetary measures but they receive only passing (and often satirical) reference in the General Theory. He mentions ‘increased public works’ as an example of something which brings employment through the ‘multiplier’,[55] but this is before he has developed the relevant theory, and the idea isn’t followed up when the theory becomes available.

text: Later in the same chapter he tells us that:

text: Ancient Egypt was doubly fortunate, and doubtless owed to this its fabled wealth, in that it possessed two activities, namely, pyramid-building as well as the search for the precious metals, the fruits of which, since they could not serve the needs of man by being consumed, did not stale with abundance. The Middle Ages built cathedrals and sang dirges. Two pyramids, two masses for the dead, are twice as good as one; but not so two railways from London to York.

text: But again the implied recommendation to engage in public works, even if they are not fully justified from their direct benefits, is not taken up when the theory has been constructed. On the contrary he advises us later that...

text: ...our final task might be to select those variables which can be deliberately controlled or managed by central authority in the kind of system in which we actually live...[56]

text: and this appears to look forward to a future publication rather than to a subsequent chapter of the General Theory.

text: Keynesian models and concepts[edit]

text: Aggregate demand[edit]

text: Keynes’s view of saving and investment was his most important departure from the classical outlook. It can be illustrated using the ‘Keynesian cross’ devised by Paul Samuelson.[57] The horizontal axis denotes total income and the purple curve shows C (Y ), the propensity to consume, whose complement S (Y ) is the propensity to save: the sum of these two functions is equal to total income which is shown by the broken line at 45°.

text: The horizontal blue line Is (r ) is the schedule of the marginal efficiency of capital whose value is independent of Y. Keynes interprets this as the demand for investment and denotes the sum of demands for consumption and investment as ‘aggregate demand’, plotted as a separate curve. Aggregate demand must equal total income, so equilibrium income must be determined by the point at which the aggregate demand curve crosses the 45° line.[58] This is the same horizontal position as the intersection of Is (r ) with S (Y ).

text: The equation Is (r ) = S (Y ) had been accepted by the classics, who had viewed it as the condition of equilibrium between supply and demand for investment funds and as determining the interest rate (see the classical theory of interest). But insofar as they had had a concept of aggregate demand, they had seen the demand for investment as being given by S (Y ), since for them saving was simply the indirect purchase of capital goods, with the result that aggregate demand was equal to total income as an identity rather than as an equilibrium condition. Keynes takes note of this view in Chapter 2, where he finds it present in the early writings of Alfred Marshall but adds that ‘the doctrine is never stated to-day in this crude form’.

text: The equation Is (r ) = S (Y ) is accepted by Keynes for some or all of the following reasons:

text:
As a consequence of the ‘principle of effective demand’ which asserts that aggregate demand must equal total income (Chapter 3).
As a consequence of the identity of saving with investment (Chapter 6) together with the equilibrium assumption that these quantities are equal to their demands.
In agreement with the substance of the classical theory of the investment funds market, whose conclusion he considers the classics to have misinterpreted through circular reasoning (Chapter 14).

tag: ul

text: These arguments support each other under Keynes’s assumptions but would not necessarily do so under more general ones, e.g. if one sought to allow for foreign trade as in the Mundell–Fleming model.

text: The Keynesian multiplier[edit]

text: Keynes introduces his discussion of the multiplier in Chapter 10 with a reference to Kahn’s earlier paper (see above). He designates Kahn’s multiplier the ‘employment multiplier’ in distinction to his own ‘investment multiplier’ and says that the two are only ‘a little different’.[59] Kahn’s multiplier has consequently been understood by much of the Keynesian literature as playing a major role in Keynes’s own theory, an interpretation encouraged by the difficulty of understanding Keynes’s presentation. Kahn’s multiplier gives the title (‘The multiplier model’) to the account of Keynesian theory in Samuelson’s Economics  and is almost as prominent in Alvin Hansen’s Guide to Keynes  and in Joan Robinson’s Introduction to the Theory of Employment.

text: Keynes states that there is...

text: ...a confusion between the logical theory of the multiplier, which holds good continuously, without time-lag... and the consequence of an expansion in the capital goods industries which take gradual effect, subject to a time-lag, and only after an interval...[60]

text: and makes clear that it is the former theory which he is adopting.[61] And when the multiplier eventually emerges as a component of Keynes’s theory (in Chapter 18) it turns out to be simply a measure of the change of one variable in response to a change in another. The schedule of the marginal efficiency of capital is identified as one of the independent variables of the economic system:[62] ‘What [it] tells us, is... the point to which the output of new investment will be pushed...’.[63] The multiplier then gives ‘the ratio... between an increment of investment and the corresponding increment of aggregate income’.[64]

text: G. L. S. Shackle regarded Keynes’s move away from Kahn’s multiplier as...

text: ...a retrograde step... For when we look upon the Multiplier as an instantaneous functional relation... we are merely using the word Multiplier to stand for an alternative way of looking at the marginal propensity to consume...[65]

text: which G. M. Ambrosi cites as an instance of “a Keynesian commentator who would have liked Keynes to have written something less ‘retrograde’ ”.[66]

text: The value Keynes assigns to his multiplier is the reciprocal of the marginal propensity to save: k  = 1 / S '(Y ). The corresponding formula for Kahn’s mutliplier in a closed economy should be k ' = 1 / H '(Y ) where H '(Y ) is the marginal propensity to hoard. Keynes’s formula is the same as Kahn’s only if saving can be identified with hoarding. Keynes gave his formula almost the status of a definition (it is put forward in advance of any explanation[67]). His multiplier is indeed the value of ‘the ratio... between an increment of investment and the corresponding increment of aggregate income’ under his Chapter 13 model of liquidity preference, which implies that income must bear the entire effect of a change in investment. But under his Chapter 15 model a change in the schedule of the marginal efficiency of capital has an effect shared between the interest rate and income in proportions depending on the partial derivatives of the liquidity preference function. The resulting multiplier has a more complicated formula and a smaller numerical value.[68]

text: The liquidity trap[edit]

text: The liquidity trap is a phenomenon which may impede the effectiveness of monetary policies in reducing unemployment.

text: It has generally been considered that the rate of interest would not fall below a certain limit, often seen as zero or a slightly negative number. Keynes suggested that the limit might be appreciably greater than zero but did not attach much practical significance to it. The term ‘liquidity trap’ was coined by Dennis Robertson in his comments on the General Theory ,[69] but it was John Hicks in “Mr. Keynes and the Classics” [70] who recognised the significance of a slightly different concept.

text: If the economy is in a position such that the liquidity preference curve is almost vertical, as must happen as the lower limit on r  is approached, then a change in the money supply M̂  will make almost no difference to the equilibrium rate of interest r̂  or, unless there is compensating steepness in the other curves, to the resulting income Ŷ. As Hicks put it, ‘monetary means will not force down the rate of interest any further’.

text: Paul Krugman has worked extensively on the liquidity trap, claiming that it was the problem confronting the Japanese economy around the turn of the millennium.[71] In his later words:

text: Short-term interest rates were close to zero, long-term rates were at historical lows, yet private investment spending remained insufficient to bring the economy out of deflation. In that environment, monetary policy was just as ineffective as Keynes described. Attempts by the Bank of Japan to increase the money supply simply added to already ample bank reserves and public holdings of cash...[72]

text: The IS-LM model[edit]

text: Hicks showed how to analyze Keynes’s system when liquidity preference is a function of income as well as of the rate of interest. Keynes’s admission of income as an influence on the demand for money is a step back in the direction of classical theory, and Hicks takes a further step in the same direction by generalizing the propensity to save to take both Y  and r  as arguments. Less classically he extends this generalization to the schedule of the marginal efficiency of capital.

text: The IS-LM model uses two equations to express Keynes’s model. The first, now written Is (Y,r ) = S (Y,r ), expresses the principle of effective demand. We may construct a graph on (Y,r ) coordinates and draw a line connecting those points satisfying the equation: this is the IS  curve. In the same way we can write the equation of equilibrium between liquidity preference and the money supply as L(Y ,r ) = M̂ and draw a second curve – the LM  curve – connecting points which satisfy it. The equilibrium values Ŷ  of total income and r̂  of interest rate are then given by the point of intersection of the two curves.

text: If we follow Keynes’s initial account under which liquidity preference depends only on the interest rate r, then the LM  curve will be horizontal.

text: Joan Robinson commented that:

text: ...modern teaching has been confused by J. R. Hicks’ attempt to reduce the General Theory to a version of static equilibrium with the formula IS/LM. Hicks has now repented and changed his name from J. R. to John, but it will take a long time for the effects of his teaching to wear off.

text: Hicks subsequently relapsed.[73]

text: Keynesian economic policies[edit]

text: Active fiscal policy[edit]

text:
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text: Keynes argued that the solution to the Great Depression was to stimulate the country ("	incentive to invest") through some combination of two approaches:

text:
A reduction in interest rates (monetary policy), and
Government investment in infrastructure (fiscal policy).

tag: ol

text: If the interest rate at which businesses and consumers can borrow is decreased, investments which were previously uneconomic become profitable, and large consumer sales which are normally financed through debt (such as houses, automobiles, and, historically, even appliances like refrigerators) become more affordable. A principal function of central banks in countries which have them is to influence this interest rate through a variety of mechanisms which are collectively called monetary policy. This is how monetary policy which reduces interest rates is thought to stimulate economic activity, i.e. "grow the economy", and why it is called expansionary monetary policy.

text: Expansionary fiscal policy consists of increasing net public spending, which the government can effect by a) taxing less, b) spending more, or c) both. Investment and consumption by government raises demand for businesses' products and for employment, reversing the effects of the aforementioned imbalance. If desired spending exceeds revenue, the government finances the difference by borrowing from capital markets by issuing government bonds. This is called deficit spending. Two points are important to note at this point. First, deficits are not required for expansionary fiscal policy, and second, it is only change in net spending that can stimulate or depress the economy. For example, if a government ran a deficit of 10% both last year and this year, this would represent neutral fiscal policy. In fact, if it ran a deficit of 10% last year and 5% this year, this would actually be contractionary. On the other hand, if the government ran a surplus of 10% of GDP last year and 5% this year, that would be expansionary fiscal policy, despite never running a deficit at all.

text: But – contrary to some critical characterizations of it – Keynesianism does not consist solely of deficit spending, since it recommends adjusting fiscal policies according to cyclical circumstances.[74] An example of a counter-cyclical policy is raising taxes to cool the economy and to prevent inflation when there is abundant demand-side growth, and engaging in deficit spending on labour-intensive infrastructure projects to stimulate employment and stabilize wages during economic downturns.

text: Keynes's ideas influenced Franklin D. Roosevelt's view that insufficient buying-power caused the Depression. During his presidency, Roosevelt adopted some aspects of Keynesian economics, especially after 1937, when, in the depths of the Depression, the United States suffered from recession yet again following fiscal contraction. But to many the true success of Keynesian policy can be seen at the onset of World War II, which provided a kick to the world economy, removed uncertainty, and forced the rebuilding of destroyed capital. Keynesian ideas became almost official in social-democratic Europe after the war and in the U.S. in the 1960s.

text: The Keynesian advocacy of deficit spending contrasted with the classical and neoclassical economic analysis of fiscal policy. They admitted that fiscal stimulus could actuate production. But, to these schools, there was no reason to believe that this stimulation would outrun the side-effects that "crowd out" private investment: first, it would increase the demand for labour and raise wages, hurting profitability; Second, a government deficit increases the stock of government bonds, reducing their market price and encouraging high interest rates, making it more expensive for business to finance fixed investment. Thus, efforts to stimulate the economy would be self-defeating.

text: The Keynesian response is that such fiscal policy is appropriate only when unemployment is persistently high, above the non-accelerating inflation rate of unemployment (NAIRU). In that case, crowding out is minimal. Further, private investment can be "crowded in": Fiscal stimulus raises the market for business output, raising cash flow and profitability, spurring business optimism. To Keynes, this accelerator effect meant that government and business could be complements rather than substitutes in this situation.

text: Second, as the stimulus occurs, gross domestic product rises, raising the amount of saving, helping to finance the increase in fixed investment. Finally, government outlays need not always be wasteful: government investment in public goods that will not be provided by profit-seekers will encourage the private sector's growth. That is, government spending on such things as basic research, public health, education, and infrastructure could help the long-term growth of potential output.

text: In Keynes's theory, there must be significant slack in the labour market before fiscal expansion is justified.

text: Keynesian economists believe that adding to profits and incomes during boom cycles through tax cuts, and removing income and profits from the economy through cuts in spending during downturns, tends to exacerbate the negative effects of the business cycle. This effect is especially pronounced when the government controls a large fraction of the economy, as increased tax revenue may aid investment in state enterprises in downturns, and decreased state revenue and investment harm those enterprises.

text: Views on trade imbalance[edit]

text:
In the last few years of his life, John Maynard Keynes was much preoccupied with the question of balance in international trade. He was the leader of the British delegation to the United Nations Monetary and Financial Conference in 1944 that established the Bretton Woods system of international currency management.
He was the principal author of a proposal – the so-called Keynes Plan – for an International Clearing Union. The two governing principles of the plan were that the problem of settling outstanding balances should be solved by 'creating' additional 'international money', and that debtor and creditor should be treated almost alike as disturbers of equilibrium. In the event, though, the plans were rejected, in part because "American opinion was naturally reluctant to accept the principle of equality of treatment so novel in debtor-creditor relationships".[75]

text:
The new system is not founded on free-trade (liberalisation[76] of foreign trade[77]) but rather on the regulation of international trade, in order to eliminate trade imbalances: the nations with a surplus would have a powerful incentive to get rid of it, and in doing so they would automatically clear other nations deficits[78]. He proposed a global bank that would issue its own currency - the bancor - which was exchangeable with national currencies at fixed rates of exchange and would become the unit of account between nations, which means it would be used to measure a country's trade deficit or trade surplus. Every country would have an overdraft facility in its bancor account at the International Clearing Union. He pointed out that surpluses lead to weak global aggregate demand – countries running surpluses exert a "negative externality" on trading partners, and posed far more than those in deficit, a threat to global prosperity.[79]
In "National Self-Sufficiency" The Yale Review, Vol. 22, no. 4 (June 1933) [80][81], he already highlighted the problems created by free trade.

text: His view, supported by many economists and commentators at the time, was that creditor nations may be just as responsible as debtor nations for disequilibrium in exchanges and that both should be under an obligation to bring trade back into a state of balance. Failure for them to do so could have serious consequences. In the words of Geoffrey Crowther, then editor of The Economist, "If the economic relationships between nations are not, by one means or another, brought fairly close to balance, then there is no set of financial arrangements that can rescue the world from the impoverishing results of chaos."[82]

text: These ideas were informed by events prior to the Great Depression when – in the opinion of Keynes and others – international lending, primarily by the U.S., exceeded the capacity of sound investment and so got diverted into non-productive and speculative uses, which in turn invited default and a sudden stop to the process of lending.[83]

text: Influenced by Keynes, economic texts in the immediate post-war period put a significant emphasis on balance in trade. For example, the second edition of the popular introductory textbook, An Outline of Money,[84] devoted the last three of its ten chapters to questions of foreign exchange management and in particular the 'problem of balance'. However, in more recent years, since the end of the Bretton Woods system in 1971, with the increasing influence of Monetarist schools of thought in the 1980s, and particularly in the face of large sustained trade imbalances, these concerns – and particularly concerns about the destabilising effects of large trade surpluses – have largely disappeared from mainstream economics discourse[85] and Keynes' insights have slipped from view.[86] They are receiving some attention again in the wake of the financial crisis of 2007–08.[87]

text: Postwar Keynesianism[edit]

text: Keynes's ideas became widely accepted after World War II, and until the early 1970s, Keynesian economics provided the main inspiration for economic policy makers in Western industrialized countries.[5] Governments prepared high quality economic statistics on an ongoing basis and tried to base their policies on the Keynesian theory that had become the norm. In the early era of social liberalism and social democracy, most western capitalist countries enjoyed low, stable unemployment and modest inflation, an era called the Golden Age of Capitalism.

text: In terms of policy, the twin tools of post-war Keynesian economics were fiscal policy and monetary policy. While these are credited to Keynes, others, such as economic historian David Colander, argue that they are, rather, due to the interpretation of Keynes by Abba Lerner in his theory of functional finance, and should instead be called "Lernerian" rather than "Keynesian".[88]

text: Through the 1950s, moderate degrees of government demand leading industrial development, and use of fiscal and monetary counter-cyclical policies continued, and reached a peak in the "go go" 1960s, where it seemed to many Keynesians that prosperity was now permanent.  In 1971, Republican US President Richard Nixon even proclaimed "I am now a Keynesian in economics."[89]

text: Beginning in the late 1960s, a new classical macroeconomics movement arose,  critical of Keynesian assumptions (see sticky prices), and seemed, especially in the 1970s, to explain certain phenomena better. It was characterized by explicit and rigorous adherence to microfoundations, as well as use of increasingly sophisticated mathematical modelling.

text: With the oil shock of 1973, and the economic problems of the 1970s, Keynesian economics began to fall out of favour. During this time, many economies experienced high and rising unemployment, coupled with high and rising inflation, contradicting the Phillips curve's prediction. This stagflation meant that the simultaneous application of expansionary (anti-recession) and contractionary (anti-inflation) policies appeared to be necessary. This dilemma led to the end of the Keynesian near-consensus of the 1960s, and the rise throughout the 1970s of ideas based upon more classical analysis, including monetarism, supply-side economics,[89] and new classical economics.

text: However, by the late 1980s, certain failures of the new classical models, both theoretical (see Real business cycle theory) and empirical (see the "Volcker recession")[90] hastened the emergence of New Keynesian economics, a school which sought to unite the most realistic aspects of Keynesian and neo-classical assumptions and place them on more rigorous theoretical foundation than ever before.

text: One line of thinking, utilized also as a critique of the notably high unemployment and potentially disappointing GNP growth rates associated with the new classical models by the mid-1980s, was to emphasize low unemployment and maximal economic growth at the cost of somewhat higher inflation (its consequences kept in check by indexing and other methods, and its overall rate kept lower and steadier by such potential policies as Martin Weitzman's share economy).[91]

text: Schools[edit]

text: Multiple schools of economic thought that trace their legacy to Keynes currently exist, the notable ones being Neo-Keynesian economics, New Keynesian economics, and Post-Keynesian economics. Keynes's biographer Robert Skidelsky writes that the post-Keynesian school has remained closest to the spirit of Keynes's work in following his monetary theory and rejecting the neutrality of money.[92][93] Today these ideas, regardless of provenance, are referred to in academia under the rubric of "Keynesian economics", due to Keynes's role in consolidating, elaborating, and popularizing them.

text: In the postwar era, Keynesian analysis was combined with neoclassical economics to produce what is generally termed the "neoclassical synthesis", yielding Neo-Keynesian economics, which dominated mainstream macroeconomic thought. Though it was widely held that there was no strong automatic tendency to full employment, many believed that if government policy were used to ensure it, the economy would behave as neoclassical theory predicted. This post-war domination by Neo-Keynesian economics was broken during the stagflation of the 1970s. There was a lack of consensus among macroeconomists in the 1980s. However, the advent of  New Keynesian economics in the 1990s, modified and provided microeconomic foundations for the neo-Keynesian theories. These modified models now dominate mainstream economics.

text: Post-Keynesian economists, on the other hand, reject the neoclassical synthesis and, in general, neoclassical economics applied to the macroeconomy. Post-Keynesian economics is a heterodox school that holds that both Neo-Keynesian economics and New Keynesian economics are incorrect, and a misinterpretation of Keynes's ideas. The Post-Keynesian school encompasses a variety of perspectives, but has been far less influential than the other more mainstream Keynesian schools.

text: Interpretations of Keynes have emphasized his stress on the international coordination of Keynesian policies, the need for international economic institutions, and the ways in which economic forces could lead to war or could promote peace.[94]

text: Other schools of economics[edit]

text: The Keynesian schools of economics are situated alongside a number of other schools that have the same perspectives on what the economic issues are, but differ on what causes them and how to best resolve them. Today, most of these schools of thought have been subsumed into modern macroeconomic theory.

text: Stockholm School[edit]

text: The Stockholm school rose to prominence at about the same time that Keynes published his General Theory and shared a common concern in business cycles and unemployment. The second generation of Swedish economists also advocated government intervention through spending during economic downturns[95] although opinions are divided over whether they conceived the  essence of Keynes's theory before he did.[96]

text: Monetarism[edit]

text: There was debate between monetarists and Keynesians in the 1960s over the role of government in stabilizing the economy. Both  monetarists and Keynesians agree that issues such as business cycles, unemployment, and deflation are caused by inadequate demand. However, they had fundamentally different perspectives on the capacity of the economy to find its own equilibrium, and the degree of government intervention that would be appropriate. Keynesians emphasized the use of discretionary fiscal policy and monetary policy, while monetarists argued the primacy of monetary policy, and that it should be rules-based.[97]

text: The debate was largely resolved in the 1980s. Since then, economists have largely agreed that central banks should bear the primary responsibility for stabilizing the economy, and that monetary policy should largely follow the Taylor rule – which many economists credit with the Great Moderation.[98][99] The financial crisis of 2007–08, however, has convinced many economists and governments of the need for fiscal interventions and highlighted the difficulty in stimulating economies through monetary policy alone during a liquidity trap.[100]

text: Public choice[edit]

text:
Some Marxist economists criticized Keynesian economics.[101] For example, in his 1946 appraisal[102] Paul Sweezy, while admitting that there was much in the General Theory's analysis of effective demand which Marxists could draw upon, described Keynes as in the last resort a prisoner of his neoclassical upbringing. Sweezy argued Keynes had never been able to view the capitalist system as a totality. He argued Keynes had regarded the class struggle carelessly, and overlooked the class role of the capitalist state, which he treated as a deus ex machina, and some other points.
While Michał Kalecki was generally enthusiastic about the Keynesian revolution, he predicted that it would not endure, in his article "Political Aspects of Full Employment". In the article Kalecki predicted that the full employment delivered by Keynesian policy would eventually lead to a more assertive working class and weakening of the social position of business leaders, causing the elite to use their political power to force the displacement of the Keynesian policy even though profits would be higher than under a laissez faire system: The erosion of social prestige and political power would be unacceptable to the elites despite higher profits.[103]

text:
James M. Buchanan[104] criticized Keynesian economics on the grounds that governments would in practice be unlikely to implement theoretically optimal policies. The implicit assumption underlying the Keynesian fiscal revolution, according to Buchanan, was that economic policy would be made by wise men, acting without regard to political pressures or opportunities, and guided by disinterested economic technocrats. He argued that this was an unrealistic assumption about political, bureaucratic and electoral behaviour. Buchanan blamed Keynesian economics for what he considered a decline in America's fiscal discipline.[105] Buchanan argued that deficit spending would evolve into a permanent disconnect between spending and revenue, precisely because it brings short-term gains, so, ending up institutionalizing irresponsibility in the federal government, the largest and most central institution in our society.[106]
Martin Feldstein argues that the legacy of Keynesian economics–the misdiagnosis of unemployment, the fear of saving, and the unjustified government intervention–affected the fundamental ideas of policy makers.[107]
Milton Friedman thought that Keynes's political bequest was harmful for two reasons. First, he thought whatever the economic analysis, benevolent dictatorship is likely sooner or later to lead to a totalitarian society. Second, he thought Keynes's economic theories appealed to a group far broader than economists primarily because of their link to his political approach.[108]
Alex Tabarrok argues that Keynesian politics–as distinct from Keynesian policies–has failed pretty much whenever it's been tried, at least in liberal democracies.[109]

text:
In response to this argument, John Quiggin,[110] wrote about these theories' implication for a liberal democratic order. He thought if it is generally accepted that democratic politics is nothing more than a battleground for competing interest groups, then reality will come to resemble the model.
Paul Krugman wrote "I don’t think we need to take that as an immutable fact of life; but still, what are the alternatives?" [111]
Daniel Kuehn, criticized James M. Buchanan. He argued, "if you have a problem with politicians - criticize politicians," not Keynes.[112] He also argued that empirical evidence makes it pretty clear that Buchanan was wrong.[113][114]
James Tobin argued, if advising government officials, politicians, voters, it's not for economists to play games with them.[115]
Keynes implicitly rejected this argument, in "soon or late it is ideas not vested interests which are dangerous for good or evil."[116][117]

text: Brad DeLong has argued that politics is the main motivator behind objections to the view that government should try to serve a stabilizing macroeconomic role.[118] Paul Krugman argued that a regime that by and large lets markets work, but in which the government is ready both to rein in excesses and fight slumps is inherently unstable, due to intellectual instability, political instability, and financial instability.[119]

text: New classical[edit]

text: Another influential school of thought was based on the Lucas critique of Keynesian economics. This called for greater consistency with microeconomic theory and rationality, and in particular emphasized the idea of rational expectations. Lucas and others argued that Keynesian economics required remarkably foolish and short-sighted behaviour from people, which totally contradicted the economic understanding of their behaviour at a micro level.  New classical economics introduced a set of macroeconomic theories that were based on optimizing microeconomic behaviour. These models have been developed into the real business-cycle theory, which argues that business cycle fluctuations can to a large extent be accounted for by real (in contrast to nominal) shocks.

text: Beginning in the late 1950s new classical macroeconomists began to disagree with the methodology employed by Keynes and his successors.  Keynesians emphasized the dependence of consumption on disposable income and, also, of investment on current profits and current cash flow. In addition, Keynesians posited a Phillips curve that tied nominal wage inflation to unemployment rate.  To support these theories, Keynesians typically traced the logical foundations of their model (using introspection) and supported their assumptions with statistical evidence.[120] New classical theorists demanded that macroeconomics be grounded on the same foundations as microeconomic theory, profit-maximizing firms and rational, utility-maximizing consumers.[120]

text: The result of this shift in methodology produced several important divergences from Keynesian macroeconomics:[120]

text:
Independence of consumption and current income (life-cycle permanent income hypothesis)
Irrelevance of current profits to investment (Modigliani–Miller theorem)
Long run independence of inflation and unemployment (natural rate of unemployment)
The inability of monetary policy to stabilize output (rational expectations)
Irrelevance of taxes and budget deficits to consumption (Ricardian equivalence)