Srikanth Sastry

Directive Governance Is Not Keynesian

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Directive governance is not Keynesian central planning. Keynes argued for targeted intervention to correct specific market failures: demand deficiency, coordination failures, liquidity traps. Directive governance is not targeted; it is a wholesale organizational model where all decisions flow through a hierarchy. It is a complete takeover of organizational decision-making. Mapping directive governance onto Keynesian planning flatters both: it makes Keynes look more authoritarian than he was, and makes directive governance look more principled than it is.