(excerpts)Although the article is from 1981 (or earlier?), it made me think of all the things our government is currently trying to do.
In practical terms this meant that any increase in businessmen's pessimism about the future must be offset by increased government spending to compensate for an increased propensity to hoard. Keynes was quite aware of a possible conflict between the two roles of government. Increased government spending, he warned Roosevelt, might depress private investment by an equal amount even in conditions of high unemployment if businessmen were worried by the objects of the expenditure or the methods by which it was financed, in short, he recognized the possibility that government policy may in itself be the cause of the pessimism for which government spending then had to compensate.
. . .
Labor was involuntarily unemployed only when it wished to work for a reduced real wage but was unable to do so, because it could not reduce its real wage by accepting a lower money wage; any reduction in the money wage causing the general price level to fall leaving real wages unchanged.
What I got out of reading and thinking is; "that our government can't spend us out of the current situation and that its best action may be to simply STOP trying". I think that "STOP trying" is what a great majority of the Tea Party movement is all about. We would rather go through a period of suffering than lose our country altogether through bankruptcy, or transformation to socialism/communism.
The part about being unable to work for a reduced wage was a real mind twister for me (in my present circumstance). What the mental struggle is, is that a good deal of economics involves circular catch-22 relationships and reasoning.