Keynesian Economics

The End of Honest Economics

The political class co-opted the economics profession. In America the decline began with the Great Depression where the political class panicked and “didn’t just stand there.” The intellectual support for political activism followed within years of the publication of John Maynard Keynes’ “General Theory” in 1936. That book, coupled with the desperation and pain of the time, provided the opportunity [...]

Freedom and Economic Performance

The rise and fall of countries has everything to do with the industriousness of its people. Wealth is created only by the productive sector, not by government. Governments grow large and powerful only by exploiting the wealth creation of the productive sector. Large and powerful governments are generally signs of wealthy nations. They are also signs of wealthy nations who [...]

Keynesian Economics and Governance

Recent findings by Rasmussen should not be surprising: Politicians and their cheerleaders in the political class assume that the role of government is to manage the economy. Most voters don’t. In fact, most think it’s more important for the government to protect individual rights than to promote economic growth. Is this an example of the “wisdom of the group?” It seems [...]

Keynesian Economics — Storytelling Vs. Problem-Solving

Keynesian economists merrily go about their business of managing the economy with little thought that such action might not do any good or may even be doing great harm. Too many don’t understand that economics is about human behavior and social coordination. Their employers, whether they be universities or political entities, are terribly biased toward the Keynesian meme. Deviation from [...]

Why The US Will Have Its Own Greek Tragedy

The end of the unholy marriage of political greed with faulty economics nears. Politicians, eager to expand their power and wealth, quickly saw the advantages of Keynesian economics. After seventy years of increasing economic witchcraft, the world is cracking. Politicians have succeeded beyond their wildest dreams. They have gained control (and ownership) of the economy and created great personal wealth [...]

A “Special Election” Is Coming — Brace Yourself

The US economic problems are real and large, but not unsolvable. A reasonably bright economist, unencumbered by politics, could design a solution rather easily. Pain would be involved, but the option for a solution without pain expired years ago. Any solution must involve pain, including the present strategy of pretend and extend. Addressing the problem forcefully now will result in [...]

Henry Simons’ Reacts to Keynesian Economics

Henry Simons was one of the most influential “Chicago-school” economists, especially with respect to policy proposals. He was never a prolific writer and died prematurely, yet some believe his policy positions were more influential than any other member of the Chicago-school save Milton Friedman. From Peter Boettke is this referral to a Henry Simons critique of Keynesian economics provided when [...]

Solar Energy: Ready For Alice In Wonderland

Solar energy may or may not be a solution to the energy problem eventually. It clearly is not economic today. It is nothing more than payoffs to political cronies, photo-ops for politicians and the last gasp of Obama’s central planning ideology. In short, it is a waste of money. Solyndra has blown up, costing taxpayers over $500 million. It also [...]

The Depression Moves Forward Slowly and Inexorably

What started in 2008 was the beginning of the second Great Depression. This economic crisis has just begun. It has a long way to run and no one can be sure of either timing or the full extent of the changes that will come about. My opinion has always been that history will look at this period as either Great [...]

Keynesian Economics as The Anti-Economics

While reading an article from Mish on housing, two of his passages struck me: You can temporarily jump-start nearly anything if you throw enough money at it, and that is exactly what Keynesian clown fools want to do. Unfortunately, no amount of taxpayer money is too great for any cause any fool believes in. The best way to “jump-start” housing is to let [...]

Keynesian Economics — The Root of All Political Evil

The debate over Keynesian economics rages on. The political class, buttressed by their “rented economists,”  argues that Keynesian intervention is necessary. When promised outcomes do not develop, it is claimed that the remedial dosages were too small. More spending will correct matters. Increasingly, the efficacy of Keynesian Economics is doubted. Common sense, rather than sophisticated formulas and models, is all [...]

Obama and Keynes: The Perfect Pair

The Daily Bell provides their comments on Keynesian economics. Obviously, they are not impressed: What are the results of modern Keynesianism? Well, Fed Chairman Ben Bernanke‘s been trying hard to make Keynes’ theories work without much success. The whole idea that government can administer an economy has kind of fallen by the wayside. What’s left behind are smoldering ruins. The US [...]