What is the position of the New Left on Keynesian fiscal policy?

Keynesian fiscal policy is an economic ideology developed by the economist John Maynard Keynes. It involves the use of government spending and taxation to influence aggregate demand and stabilize the economy. The central idea behind Keynesianism is that in times of economic recession or depression, the government can stimulate demand and economic growth by increasing its spending, cutting taxes, or both. On the other hand, during times of economic boom and high inflation, the government can reduce spending or raise taxes to control inflation.

The New Left is a political movement that emerged in the 1960s, primarily in Western countries. The movement was characterized by its opposition to capitalism, imperialism, and traditional liberal and conservative ideologies. The New Left advocates for various political, economic, and social reforms, including civil rights, gender equality, environmentalism, and social justice.

The New Left's stance on Keynesian fiscal policy is complex and varied, as the movement encompasses diverse political opinions and ideologies. However, there are a few general themes and criticisms that can be identified: 1. Support for government intervention: Like Keynesians, the New Left generally endorses the idea that the government has a critical role to play in managing the economy and ensuring social welfare. Increased government spending on social programs, healthcare, education, and housing are often supported by New Left perspectives. 2. Critique of capitalism: While Keynesianism aims to stabilize and sustain capitalist economies, the New Left often seeks more radical economic transformations in pursuit of social justice, equality, and environmental sustainability. Therefore, some New Left thinkers may view Keynesian fiscal policy as a temporary measure rather than a long-term solution to societal challenges and issues. 3. Redistribution of wealth and power: The New Left stresses the importance of redistributing wealth and power from the elites to the working class and marginalized communities. While Keynesian fiscal policy may help achieve some level of redistribution through increased government spending and progressive taxation, the New Left often calls for more extensive measures, such as the nationalization of key industries, stronger labor protection, and wealth taxes. 4. Focus on structural issues: Many New Left thinkers argue that the root causes of economic and social problems are structural inequalities in the capitalist system, which Keynesianism does not fully address. They emphasize alternative economic systems or mechanisms that challenge the very foundations of capitalism, rather than managing its consequences. In summary, the New Left's position on Keynesian fiscal policy is not uniform, but generally supportive of government intervention for achieving social and economic objectives, while often critical of capitalism and viewing Keynesianism as a temporary measure rather than a long-term solution to create a more just, equal, and sustainable society.