Keynesian “economics” is not just wrong; its precepts are not just based upon fallacies but also on lies. Since Keynes self-described as an “immoralist,” we shouldn‘t be surprised that his economics is immoral, too.
While Austrian economists have engaged Modern Monetary Theorists on economic terms, one should not forget that this theory promotes totalitarian governance.
Keynesians claim that through the “multiplier,” a country can spend itself into prosperity. All that is needed is for government to tax, borrow, print money and spend, and prosperity will follow. Austrian Economists, however, are not fooled by such myths.
Far from being a true measure of economic health, GDP is a misleading economic statistic that implies consumer and government spending grow the economy. When government spends, GDP increases.
In The General Theory, J.M. Keynes allegedly “discredited” Say‘s Law. Of course, Keynes actually debunked a straw man that was a caricature of what Say actually wrote. It‘s time to set the record straight.
Charles Rist was an economist of nearly a century ago who recognized the dangers behind President Franklin Roosevelt‘s attempts to demonetize gold. We are still paying the price for FDR‘s actions.
Belief in the fairy tale known as Modern Monetary Theory not only is endemic in US academic and government circles, but is also making headway in Great Britain. We are being forced to learn all over again the lessons of inflation.
John Maynard Keynes is often credited with presciently criticizing the harsh anti-German measures of the Treaty of Versailles. But, it turns out that Keynes was playing both sides.
The central pillar of the Keynesian system is that spending drives the economy, so savings on a large scale will push the economy into recession. As Austrians know, that narrative is entirely false and fails to accurately explain how the economy works.
The standard Keynesian line is that the government can shorten recessions by using fiscal and monetary “stimulus.” However, as Austrian economists note, ratcheting up government spending only makes things worse, setting the stage for the next economic downturn.
