Hard times for Keynesians

Waterbury Republican-American ^ | January 6, 2012 | Editorial

[fortheDeclaration]

Keynes never advocated a balanced budget.

He advocated cutting taxes to increase the deficit when the cycle was in a depression to increase consumer spending and raising taxes to cut the deficit when the economy improved to 'soak up consumer spending'.

His goal was to control consumer spending,never to place Government spending in balance.

[fortheDeclaration]

Keynes was never worried about debt and when asked about the long range consquences of his economic views, simply replied, 'in the long run we are all dead'.

His goal is simply to make the next generation pay the bills.

[fortheDeclaration]

No, Keynes was totally wrong, he no concept of the business cycle and what caused the boom-bust cycle.

See the youtube video on the debate between Hayek-Keynes on the business cycle.

Gov't printing of money and expansion of credit, creates the 'boom' (keeping interest rates artificially low) which in turn, leads to the 'bust' when the money runs it's course.

[fortheDeclaration]

Thanks for the link, I recommended another poster to watch that very video.

[fortheDeclaration]

Good point!

Make work projects that either could have been done by the Free Market faster and cheaper or unnecessary boondoggles (the bridge to nowhere)

[fortheDeclaration]

We are all Austrians now!

[NavVet]

True, leftists never apply the “building a surplus” side of Keynesian economics, but that doesn’t change the fact that government spending is a grossly inefficient way to allocate capital and it has never worked, no matter how many times the leftists try it. It stimulates votes, but nothing more.

[upcountryhorseman]

His name was “Keyne”