|Emmanuel Saez's graph here shows the results of the two policies. The Keynesian years (say 1948-1978) appear as a straight, flat trend. The Reaganomics years (1978-2008) appear as a straight but sharply rising trend.|
For the first thirty years after World War II, we tried Keynesian economics. Things went well for a while but ended badly. Then, for the next thirty years, we tried Reaganomics. Again things went well for a while, but ended badly.
There is some problem with both approaches.
I think the problem is in the Venn overlap. The points of agreement are the problem. The points of agreement lead to the growth of debt. Both Keynesian economics and Reaganomics produced great increases in debt.
But the points of agreement are never disputed. The policies of the Venn overlap are part of the plan no matter who is in charge. And since those policies are the source of our problems, our problems never get solved.