Monday, September 13, 2010

Keynesianism Refuted

We have recently stumbled on the phrase "military Keynesianism," and more and more we wonder if this is not an apt description of the system that the Anglo-American axis has put into place. We found a definition of military Keynesianism at Wikipedia as follows:

Military Keynesianism is a government economic policy in which the government devotes large amounts of spending to the military in an effort to increase economic growth. This is a specific variation on Keynesian economics, developed by English economist John Maynard Keynes...

The economic effects advanced by supporters of military Keynesianism can be broken down into four areas, two on the demand side and two on the supply side. On the demand side, increased military demand for goods and services is generated directly by government spending. Secondly, this direct spending induces a multiplier effect of general consumer spending. These two effects are directly in line with general Keynesian economic doctrine.

On the supply side, the maintenance of a standing army removes many workers, from the civilian workforce. In the United States, enlistment is touted as offering direct opportunities for education or skill acquisition. Also on the supply side, it is often argued that military spending on research and development (R&D) increases the productivity of the civilian sector by generating new infrastructure and advanced technology.

Of course all this is nonsense. It is part of the well-known "broken-window fallacy" and therefore partakes of the dubious assumption that one can create prosperity by destroying things and then rebuilding them. In fact, there is certainly logic to the idea that destruction creates prosperity if one simply looks at World War II from the American point of view. But a ruined Europe surely paid the price for America's resurgence.

Keynesianism is truly a disease of the West, an economic theory that does not die. Simplified to its most basic components, it uses force to grant government (and the shadowy, mercantilist elite behind it) the power to print money via central banks. Central banks then overprint money causing endless economic misalignments that result in booms and busts. Having impoverished society, those in charge of the printing presses are tempted to "stimulate" the domestic economy (and their own bank accounts) by creating war.

Conclusion: Always, Keynesianism is destructive. It spreads poverty at home and violence abroad. It centralizes power wherever it is practiced, so that the banking establishment and the military complex are inexorably pressed together until they are virtually one unit. Eventually, a large portion of a nation's creativity and creation may be co-opted by military production and subsequent sales. This is the political system that the West has exported to Iraq and is in the process of attempting to spread to Afghanistan. We prefer free markets.


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