John Edwards a moderate Keynesian

Today's Sunday New York Times magazine(June 10,2007) has a cover story on the Presidential campaign of John Edwards who currently is in third place in the Democratic party race. The article is worth reading because it shows that Edwards has decided to focus on the problem of poverty and unemployment and has also expressed a willingness to use a modest public sector deficit of 2 % of the GDP if necessary to accomplish his goal. `What distinguishes Edwards from his rivals     " according to the author of the piece Matt Bai "is his admitted willingness to run a budget deficit of up to about 2 % of the GDP (or roughly where it is now) " in order to finance necessary programs and investments to address the problems of structural inequality. (Matt Bai, The Poverty Platform, p.71 New York Times   MagazineJune 10, 2007
This is very welcome news. It is a sign hopefully that there will be some turning away in the Democratic camp from the thoroughly illiberal conservative view of fiscal policy that not even George Bush adheres to.
Let us see if Obama and Clinton move toward the very intelligent views of Edwards on these matters. Edwards apparently is not sure if the FED should cut interest rates to further stimulate the American economy.

I think that it should move away from the policy of claiming that at 2 % inflation inflationary expectations have taken hold. A 25-50 basis point reduction in rates coupled with a targeted reduction in the unemployment rate and a program of public spending and job creation would be an excellent approach that befits a truly Democratic party. This kind of moderate interest rate reduction would help stimulate the economy but would be too small to cause a asset bubble in real estate that worries some Democrats(see Dean Baker's advice in the current issue of Harpers' magazine, for example )

There is absolutely no reason for Democrats to try to be conservatives. Let Democrats be Democrats so that the party of FDR and JFK and Lyndon Johnson and Robert Kennedy and many others can once again restore hope in America among the dispossessed.

Good for John Edwards and other Democrats for raising this flag of progressive policy again.

Now if we could find a party leader in Canada to be so bold my Sunday would be brighter still.