Guger, Alois Marterbauer, Markus Walterskirchen, Ewald
Year of Publication:
WIFO Working Papers 240
There are large differences between Steindl's ideas on growth policies and the Brussels/Paris consensus. Steindl called for innovation and education policies, the mainstream today rather favours deregulation and privatisation. Steindl stressed the positive demand-side effects of the public sector and the contribution of lower household savings and anti-cyclical policies to growth. The economic mainstream praises the efficiency effects of a declining public sector, the importance of high savings for investment and warns of active anti-cyclical policies being an impediment to budget consolidation. Steindl and the Keynesians regarded the labour market situation as a consequence of economic growth. Today many economists see low growth as a result of labour market rigidities.