"Emperor, you aren't wearing any clothes". Only a child, naturally born to speak the truth, could say that.
Looks like there are no HONEST objective politicians in this world, people who can recognise Keyensians for what they are: pure idiots, who imagine that wealth is created by governments.
That's why ALL (and I mean ALL) Western nations have not only employed hundreds of Keynesians but promoted them to the very top of the economic policy pyramid.
Christina Romer (a PROFESSOR!!!!!! of Economics!) is a classical case in point.
Romer worked with "economist" Jared Bernstein to co-author the US administration's plan for recovery from the 2008 recession. [Wiki]
But finally the penny has dropped. Bloomberg writer Caroline Baum pointed out yesterday: " Remember Romer’s 3.5 million jobs “created or saved” by 2009’s $830 billion fiscal stimulus? Tell that to today’s 14 million unemployed Americans."
Instead of creating 3.5 million jobs, THIS FOOL "ECONOMIST" cost 14 million Americans their jobs.
It is a travesty of the truth to call Keynesians "economists". They simply have NO clue about economics.
Keynesian ALWAYS violate the basic law of economics: that there is no free lunch.
JOBS ARE NOT CREATED BY GOVERNMENTS BUT BY BUSINESSES that make investment decisions based on THEIR anticipation of future demand. They can readily anticipate that greater borrowings by the government will inevitably translate into greater taxes, which will REDUCE, not increase consumption in the future – just when their investment starts producing goods to be sold in the marketplace.
They can also see that ALL the money (borrowings) spent by governments in subsidies and hiring "industry policy" bureaucrats is a total WASTE. Money burnt. Wealth destroyed. (True, Keynesians then turn to the magic creator of money: the central bank, to create even more money.)
Businesses tend to be less fooled by government borrowings than by low interest rates established by central banks. That is why they tend to over-invest when the central bank keeps rates artificially low. (It can be argued that it is the force of competition that compels them, under conditions of artificially low interest rates, to over-invest – and not their inability to anticipate the bubble and the bust that will inevitably arise).
But the Keynesian low interest option ultimately fails. The Fed has kept the rate at close to zero for a few years now but has failed to revive investment.
The Keynesians have literally destroyed America, and yet, for some God forsaken reason (perhaps because politicians love to intervene in the economy), they are still being hand-picked and promoted to the TOP of the world policy pyramid.
The Keynesians are idiot savants: able to speak well, persuasively, and FOOL everyone all the time.
But Lincoln did say that you can't fool all the people all the time. So some people, at least, are now waking up.
It is too late for those who have lost their jobs and life savings because of Alan Greenspan, Ben Bernanke and Christina Romer (among the many other Keynesains who have RUINED the American economy).
But there is still hope that people will finally wake up and start asking Keynesians about the RESULTS of their interventions.
Keynes must be exorcised from the portals of economic policy thinking for ever.
Don't hold your breath, though. It will take virtually the entire collapse of the West for it to learn that lesson. But by then communism might well have set in. And possibly a World War (no, I'm not joking).
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