Keynesian Economics is Just as Dead as John Maynard Keynes
I have watched over the years as idiots have pushed forward “Keynesian Economics” as if they are in the know of what works in national and world economies. Â When you sum up John Maynard Keynes, it is all about government deficit spending to get national economies back from the brink of recession or depression. Â The problem is that government spending only works as a short term stimulus when things are not so bad. And – ONLY – if it is really spent in ways that make the money enter the economy, not labor unions and friends on Wall Street.
By short term, I mean the improvement is months at best. Â The deficit usually comes back so much stronger that any good it may have done is quickly undone.
Have you heard the argument that “Paul Krugman won the Nobel Prize in Economics, and he is a Keynesian!” Â Well, it is not about bias with someone like Paul Krugman. Â He believes what he believes, and that’s fine. Â The deal here is that there is no successful use of massive deficit spending to get any country out of dire economic circumstances. Â One can cite Nobel Laureate Krugman as the reason to believe, but that would be like citing Nobel Laureate Barack Obama for his contributions to peace.
This stimulus has failed. The policies of Barack Obama have brought our country to its financial knees. With entitlements killing any hope of moving forward on getting our budget in order, it is clear that all of the policies of the Republicans (excluding RINO’s), true conservatives and our most beloved Tea Party Patriots are our only choice now.
For those that care, here is a short piece of an article on Keynes from The New York Times. Â It shows you the bias they have for man. Â I think they get tears when ever they see the size of our American Deficit. Â We can truly thank John Maynard Keynes. Â Here is that excerpt, followed by a link so you can read it all.
“John Maynard Keynes (1883-1946), the British economist who developed the theory that increasing government deficits stimulate a sluggish economy, was long the guiding light of liberal economists. He is considered one of the major economists of the 20th century. And these days, he is enjoying a comeback.
“In his times, he quarreled with laissez-faire economic policies, and with the beliefs that all uncertainty could be reduced to measurable risk, that asset prices always reflected fundamentals and that unregulated markets would in general be very stable.
“Keynes created an economics whose starting point was that not all future events could be reduced to measurable risk. There was a residue of genuine uncertainty, and this made disaster an ever-present possibility, not a once-in-a-lifetime “shock.†Investment was more an act of faith than a scientific calculation of probabilities. And in this fact lay the possibility of huge systemic mistakes.”
Let’s hope Keynes’ ideas are finally laid to rest so the rest of us can survive economically and fix this country.
John
Publisher, Nobama.com
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