Keynesian theory prescribed deficit spending only to stimulate a slow economy, with surpluses and debt paydown during prosperity; modern US politicians of both parties have kept the deficit spending while forgetting the surplus-and-paydown half, running a $1.8 trillion deficit (6.4% of GDP) in fiscal 2024 during prosperity.

causalpending

Speaker

Howard Marks

Evidence Quote

the part about surpluses and payowns has been forgotten.

Source

More on Repealing the Laws of EconomicsOaktree Capital
Created: 6/18/2026, 2:18:14 PM

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