Are We All Keynesians Now?

Brad DeLong thinks the answer is: "no ... but we should be." Read his post on "Say's Law". One thing I wasn't clear on was that he concedes that Americans will be buying T-bills and Gov't debt (which is what supply-siders argue will offset actual investment)- but I'm not sure that's true ... won't China buy most of it and therefore free up localized investment? I don't know - I'm not much of an economist.

My executive summary:

Some opponents of the stimulus rely on "Say's Law" which is the claim that decisions to increase spending - whether from the gov't or anyone else - can't spur the economy and raise employment and production b/c demand is created by supply. If the gov't spends, then someone else must cut back. DeLong reminds us that the '03-'06 credit bubble (spending) and the '96-'00 housing bubble (spending) did boost employment - and in general spending spurs the economy, and the gov'ts money is as good as anyone else's.