Skip to comments.Why is failed Keynesianism back in vogue?
Posted on 03/01/2009 7:24:14 AM PST by rellimpank
Fortuitously, I recently stumbled on a copy of Henry Hazlitt's "The Failure of the 'New Economics,' " 1959, reprinted 1973.
The "New Economics" referred to by the esteemed Mr. Hazlitt -- who replaced H.L. Mencken as editor of The American Mercury in 1933 and joined The New York Times in 1934, writing financial and economic editorials there and later a bylined weekly financial column well into the 1960s -- is Keynesianism, the economic doctrines of the Briton John Maynard Keynes which are still widely taught in American college economics courses.
The top blurb on the back dust jacket panel caught my eye:
"A great book, the best and most thorough exercise in economic demolition since Boehm-Bawerk exploded Marx's labor theory of value," wrote my late friend Murray Rothbard, in the National Review. "It is no exaggeration to say that this is by far the best book on economics published since Mises' great 'Human Action' ten years ago ... It will be read, and it will destroy the Keynesian system."
Writing in the Christian Science Monitor, Ludwig von Mises himself said of this book "Hazlitt has entirely demolished the Keynesian misconceptions."
In brief, Keynesianism -- as set forth by Keynes 73 years ago in his "General Theory of Employment, Interest and Money" -- holds that the twin answers to unemployment and economic downturns are massive government deficit spending and "cheap money" -- the artificial driving down of interest rates to "free up more credit."
(Excerpt) Read more at lvrj.com ...
I’m for all that stuff you listed. Toss in a dividends tax cut while you’re at it. And nuke power.
Liberal ia called "conservative" as long as you have an (R) after your name and pretend to fight a War on Terror (while leaving the homeland vulnerable to attack with the border open).
Because there’s a failed Kenyan in the WH! ;^)
Just maybe God knows how bad his creation(s) are at basic economics.
The Kensyians have been brooding for decades. They think that had their advice been followed before there would have been no great depression. Instead the powers that be here and in Europe caused a tightening and squeezing and killing of the banks. Tens of thousands of banks failed. Business stopped. Jobs evaporated.
This time it will be different. This time we will flood the markets and there will be so much money there cannot possibly be a significant down turn.
And of course we should increase nuke power. EDF is trying to place itself in the market. There is so much for him to do and what does he do? He goes on a date with his wife on Valentine's Day and then signs a bill that saves Pelosie’s Salt Marsh Mouse instead of growing the economy. Yikes! We have a loser here!
“Chris Wallance on FNS, to Senator Jon Kyl: “Senator, the Republicans have an image problem with overspending ...”
Kyl had a luke-warm response to that, although Rep. Ryan had a much better comment a little later. I like this Ryan. He talked about the Pubbies being amateurs in spending, which the Dems are professionals. (we should not forget that amateurs built the Ark, and professionals built the Titanic.)
But, the Republicans need to start using the word “amuck” when talking about the Democrats and spending. The image of Chuck the Schmuck and Barney Frank and Nancy Pelosi running down the street handing out blank, signed checks to total strangers should be in the background every time a Republican talks about Democrat spending.”
I didn't watch the Sunday Morning programs. But if what is stated is accurate, Kyl needs to get over the Bush years. Focus on today and the future.
I have a better idea. Cut all unconstitutional spending which would eliminate 75% of spending then reduce taxes to the point that we make just enough surplus to pay back maturing debt.