Comments on: The Trouble With Keynes

By: David Beadles

David Beadles — Wed, 27 Oct 2010 15:39:27 +0000

Why would politicians attempt to read or understand economic theory?
It’s not easily digested or summarized in simple formulas – or if it is then it is distorted in the process.
Besides, Congressional “leaders” don’t even read the bills they pass, so it is not surprising they do not trouble themselves with attempting to digest substantive writings from economic theorists.
They need only learn how best to get votes. And the answer is easy.
Spend other people’s money.

By: Fred Thompson

Fred Thompson — Thu, 21 Oct 2010 18:10:25 +0000

The use of Keynesian fiscal policy is biased toward “stimulation” either through government spending increases (Democratic way) or through tax cuts (the Republican way). This is generally popular with voters who think they are getting something for nothing. To the Keynesians, the resulting deficits do not matter; they merely have to be financed. The Federal Reserve is generally accommodative since its continued independence and Board of Governors appointments depend on the goodwill of the Congress and the President. The result is that balancing the federal budget is ignored and no longer has a restraining effect on the public sector’s tendency to spend more than it takes in via taxes. So we have perpetual deficits, a burgeoning national debt, and unconstrained, wasteful government spending. It’s as if the President and Congress have a credit card with no maximum balance that they can use to buy votes and achieve their ideological objectives. Voters could provide discipline, but most are not aware that there is a problem. Eventually, interest on the national debt will grow until it takes so large a share of the budget that something (national defense, entitlements, education, etc.) will be cut to the bone just to pay the interest. Those who purchase government bills, notes, and bonds will start demanding higher interest rates as these instruments “roll over.” Then the USA will become like Greece or some third world nation that lurches from one financial crises to another, begging other nations for a bailout.

By: The Trouble With Keynes | The Freeman | Ideas On Liberty | The Libertarian Alliance: BLOG

Thu, 21 Oct 2010 14:43:21 +0000

[...] 1993 • Volume: 43 • Issue: 10 • Print This Post • 6 [...]

By: Doug Calvin

Doug Calvin — Thu, 21 Oct 2010 14:24:57 +0000

Progressives need Keynesian theory as camouflage to advance statist agendas. It will never go away, no matter how “…nearly defunct in theory…” it becomes. It is a useful control/obfuscation mechanism; much as a baseless accusation of “racism” is. Heath is 100% correct: “…having the democrats read it wouldn’t help”.

By: Phil Lewis

Phil Lewis — Thu, 21 Oct 2010 13:03:28 +0000

Politicians deny the classical definition of insanity … that’s the problem. Why do supposedly intelligent beings continue to revisit the past?

By: Deefburger

Deefburger — Thu, 01 Jul 2010 14:08:33 +0000

In the economy, value is exchanged between individual parties. But when “thin-air” money is introduced, exchange is no longer the operative word. An exchange appears to happen, but the result is not exchange of value, but an exchange of a token value for a real value. This is a transfer of value between individual parties in an apparent exchange.

The direction of value transfer is in the direction of the spender of the fiat “thin-air” money. The first spender is of course the bank that issues the fiat money, thus effectively transferring real wealth to the bank, and replacing it with worthless tokens in the economy.

The only thing in the economy that is multiplied, is the count of tokens, and the prices demanded for those tokens. Any other apparent gains to the economy itself are either temporary, or driven by real production created by the individual players within the economic system, the bank contributed nothing.

By: William Finch

William Finch — Wed, 30 Jun 2010 23:57:37 +0000

Didn’t Keynes author an elenchus of his own body of work just before he died? If so, i’d love to get a hold of a copy.

By: Richard Mercer

Richard Mercer — Thu, 29 Jan 2009 20:14:29 +0000

I’ve read a lot in the last 35 years of my life in the fight to regain my constitutional freedoms back. In all this study it all leads to the taking of property threw a property tax or rent as I call it. If and when that real property tax is ever done away with we the people will see relief across the board. What better way to distroy a nation than to take all property from its so-called owners. The FED knows this and our government is banking on it with the bailout.

By: Heath Nestor

Heath Nestor — Thu, 29 Jan 2009 15:02:58 +0000

Unfortunately, having the democrats read it wouldn’t help. Our problems don’t stem from lack of knowledge. They are the product of people insisting on believing what they want to believe. If mere exposure to the truth were enough, our problems would be solved. Few people are willing to think and reevaluate their beliefs. This is the equivalent to an inoculation against new ideas. For those who believe falsehoods, it an inoculation against truth.

Heath Nestor

By: Scott

Scott — Thu, 29 Jan 2009 14:02:15 +0000

It is too bad that each Democrat that supported the stimulus didn’t read this before voting for it. I remember Leonard Read used to say “It is always easy to be generous with someone else’s money.”