I had a run-in with a Keynesian. I’m tired of the ignorance of this group, so here’s some thought provoking economic issues and why Keynes does NOT work.
First, in historical context, Keynes was Lloyd-George’s economic adviser at the 1919 Paris Peace Talks. That’s right, Keynes’ economic data base consisted only of the years 1860 through 1919. He was educated during the XIXth century, and at the height of economic success, over 60% of the industrial world’s population STILL LIVED ON FARMS!
Next is to consider that Marxism equated to Bolshevism, not any kind of democratic or free market economy back then.
Next is the fact that at this time, economists still followed, Locke, Smith, Metternich, and Victoria, for their economic theories and the governments within which they worked. This means that for capitalism to be successful, there had to be a large, but not as large as farm, and dirt cheap, labor source.
Keynes developed his theories before there was electricity, cars, telephones, computers, Ford assembly lines, and just about everything that is now around you. Even Africa has electricity and nearly 100% cell phone coverage, for all of its poverty.
From the historical perspective of 2011, I wrote in “The Albany Plan Re-Visited”, that, noting that Iceland was patient zero in the 2008 Financial Collapse, that the negative nature of all recessions and depressions, could be easily quantifiable by determining the percentage of GGP (Gross Global Product) dedicated to easy credit and central government syphoning of capital into welfare programs. The looser the credit, as shown in Cohan’s “House of Cards”, pp 293 – 333, coupled to the waste of tax dollars, determines both the size and depth of the following recession/ depression.
For bases, read von Mises, Hazlett, and Sowell. Quantitative Easing is theft of value from wealth producers! I’d rather have 3 dollars when bread is 1 dollar a loaf, than 5 dollars when bread is 5 dollars a loaf!