Jeffrey Sachs recently came out with an op-ed in the Financial Times, wherein he repudiates Keynesianism but advocates the only fix remaining for the financial crisis - increasing taxes on the wealthy.
Time to Plan for Post-Keynesian Era Password protected, but you can get the summary at Zerohedge by Tyler Durden.
As we've noted in this blog, market income and tax policies during the past three decades have ensured that the average person's income has not grown in inflation adjusted terms for thirty years in many western countries, while the richest 10% have amassed a vast majority of the gains from productivity during this time. Personal debts are in many cases piled so high that they cannot be repaid when incomes remain stagnant, as they are now, or when incomes are falling, as they will under a Peak Oil scenario.
See The Peasants Are Storming the Gate. Let Them Eat Cake?
The politics are such that it's unlikely that governments will choose this course of action - tilting the tax system to ensure fair outcomes. In all likelihood, Peak Oil will continue to push the economy towards collapse before we understand events and what we might do different.
It is not an optimistic outcome, but then that is just how epic collapses are made. And historians are later left explaining how a people could have been so unbelievably short-sighted.