What you’re describing is essentially Keynesian economics which we had till the 70’s or 80’s, and it did fall out of favor, replaced by neoliberalism that we know now.
The reason why was essentially capitalism - historical conditions why high rate of profit that allowed keynesiasm disappeared (such as war which tends to lead to massive profits via destruction of capital, still expanding global markets and US hegemony over the economy), so the rate of profit fell. People lost jobs, wages couldn’t be raised and state couldn’t really do much about it without pumping a ton of money via intervention, so instead what we got was attacks on labor organization, privatization and deregulation.
The only chance to return to that kind of economy (and by that I mean if everyone collectively forgot about neoliberalism too) would be through another world war and its unprecedented destruction of capital. Even then it’d be temporary again until rate of profit declines, as it does with capitalism regardless of economic system.
What you’re describing is essentially Keynesian economics which we had till the 70’s or 80’s, and it did fall out of favor, replaced by neoliberalism that we know now.
The reason why was essentially capitalism - historical conditions why high rate of profit that allowed keynesiasm disappeared (such as war which tends to lead to massive profits via destruction of capital, still expanding global markets and US hegemony over the economy), so the rate of profit fell. People lost jobs, wages couldn’t be raised and state couldn’t really do much about it without pumping a ton of money via intervention, so instead what we got was attacks on labor organization, privatization and deregulation.
The only chance to return to that kind of economy (and by that I mean if everyone collectively forgot about neoliberalism too) would be through another world war and its unprecedented destruction of capital. Even then it’d be temporary again until rate of profit declines, as it does with capitalism regardless of economic system.