Keynesian Economics – Still Dead at the Ripe Old Age of 74

Finally, cogent analysis of the fallacies of Keynesian-style stimulus spending intended to prop-up aggregate demand. 

In an excellent article (found here), Eric Sprott and David Franklin – of Sprott Asset Management – provide a compendium of economic findings related to the efficacy of government stimulus spending.  The conclusion:  (as if any reasonably minded Austrian couldn’t have guessed)  NET NEGATIVE IMPROVEMENT IN GDP.   

Yes, that’s right, beyond it’s marginally important role in maintaining the general  rule of law and minor “foreign contingency operations”, the Federal Government is the biggest waste of space, thought, money, and (for some of us) sleep, that might be imagined. 

More to the point, the simple fact that so many are tempted to employ the government to “rescue” or “help” anybody or anything suggests, to me, a serious moral and ethical problem, not merely an intellectual one.  Let’s face it folks, government – especially the democratic and statist varieties – is force, pure and simple.  To provide such “help”, the government must force someone to pay for it. 

I don’t know about you, but I call that theft, don’t you? 

(If not, could you split some firewood for me, you know, just to “help” me out.  If I came over an asked you while pointing my pistol in your direction, might that provide adequate inspiration to your withered charitable instincts?)

Aside from these seemingly plain and obvious moral and ethical problems, one might reasonably expect that any economy so overly burdened by rampant communal plundering would, at the end of the day, pack up it’s tent and repair to the nearest hole in the ground.  And, wonder of wonders, that’s exactly what happens.  The more you punish success, the more it retreats, runs, hides, get’s even. 

Still a believer?  May I refer you to my last post.

Harry Tuttle


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