"We're All Keynesians Again" shouted the Wall Street Journal's opinion page recently. The collapse of the financial markets and the subsequent recession, depression, banana, or whatever you want to call it, has the intelligentsia screaming for government money as prescribed by John Maynard Keynes so many years ago. And what with all college undergraduates receiving an economics education in Keynesianism and nothing but, no wonder government intervention is thought to be the cure for what ails the punk economy. Of course the fact is that the current funk is the result of Keynesian policies, and more of it will just prolong the downturn...
Schumpeter may not have been the strongest free-market advocate, but he would surely be dismayed by the current worship of Keynesian interventionism, which will ultimately stifle the entrepreneurial genius that drives capitalism and improved living standards.
read the essay
My thoughts: Here is "We Are All Keynesians Again" essay that was referenced. Keynesianism is continually discredited by economists who understand markets. Yet, politicians will never abandon the theories that justify their power and interference in the economy.
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