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So why did the structuralist view prevail? There was some left-right aspect, as there is with everything these days – any analysis suggesting that the government can do positive things is automatically rejected by half the political spectrum. But there was also the problem Keynesian economics always faces: it just doesn’t sound serious enough to Serious People. The idea that mass unemployment is fundamentally just a problem of inadequate demand – that all we have is magneto trouble – and that it is easily solved by spending more, sounds too easy.
I’d like to think that the way things turned out would serve as a lesson in future crises. But I wouldn’t bet on it.
