John Maynard Keynes and his economic theories that have become know as Keynesianism are more flawed than the theories of the Flat Earth Society. Keynes was an early 20th century economist who espoused Government intervention during economic downturns. The core tenant of his theory states that the Government should reduce interest rates and borrow and spend money to “prime the pump” and “stimulate” the economy. This theory was first put in action on a national scale by Herbert Hover and his successor Franklin Roosevelt with devastating consequences as explained in Amity Shales wonderful book The Forgotten Man. Keynes and his theories were wrong when first proposed, are wrong now, will be still be wrong in the future and have failed miserably every time they have been put into practice.
Dan Mitchell of The Cato Institute explains the reason for the incessant failure of Keynesianism:
“When the people find that they can vote themselves money, that will herald the end of the republic.“
- Benjamin Franklin
Do you write anymore?
Comment by Jim — August 8, 2009 @ 12:35 pm