Critical of Keynesian Economics
I’m critical of spending away in the short run whilst compromising long term opportunities.
John Maynard Keynes’ philosophies made a bad economic situation in the 1930’s worse by prolonging economic recovery. Keynesian economics was the philosophy of the Roosevelt Administration. Keynes promoted huge increases in spending on social programs by federal governments. He believed that you could spend your way out of any economic downturn.
Keynesian’s believe the government is the solution to all problems and that big business is the cause of all that is evil and greedy. Keynesian’s by nature are liberal. Liberal in their views about lifestyle, capitalism, and government.
Keynesian thinking is the opposite of what logic dictates. Logically, markets tend to move to equilibrium on the basis of supply and demand. Keynesian’s believe one can force demand by spending. But in the long run, if there is no demand for a product or currency, you can only prop up that industry or currency for so long before total collapse. It’s not if, it’s when it fails.
Here is an example of a currency crisis in England:
George Soros made a $1.1 Billion in one day in 1992 when he ‘Broke the Bank of England’ with his bet against the British pound. The pound failed because it was artificially propped up. Had it been allowed to float freely against other currencies, the damage would not have been so immediately drastic. George now claims to see a global meltdown. Nice timing George, couldn’t see that one coming. We can close the barn door now. Thanks. George is a Keynesian of the worst kind or the best kind, depending upon your point of view. He makes money off of other liberals failures.
The automobile industry in the United States comes to mind when thinking about failed industries being propped up with a Keynesian economic philosophy. General Motors specifically. A Keynesian would want to bail out GM indefinitely or until catastrophic failure occurs, whilst true capitalists would want the markets decide the fate of GM.
Keynesian logic not only a failed logic, but also poses the greatest threat to our long term economic stabilization. Keynesian’s tend to be propagandists, who spew fowl words about conservatism.
Here is a recent example of liberal propaganda: Jocelyn Bucaro*,appeared in Cox news pronouncing, “The Failure of Conservatism”. Ms. Buckaroo has rewritten history. The entire article was a sham, pure propaganda with little fact, and lots of forgetting. Forgetting the massive economic failures during deployment of Keynesian doctrines in our country, the UK and many parts of Europe during the 30’s, 40’s, 50’s, 60’s and now in 2009.
No, Capitalism hasn’t failed, its wild Keynesian spending that has failed. It fails every time, its failing now, it will be the biggest failure / burden for our children and grandchildren.
*Jocelyn Bucaro of Liberty Twp. is a former Clinton White House staffer and a founding member of Change Butler PAC.