The Keynesians Were Wrong Way Before the 1970s
By William Shughart • Saturday September 12, 2009 5:21 PM PDT • 2 Comments
In an editorial published in the Wall Street Journal on 9/11, former Reagan and George H. W. Bush public official Peter Ferrara writes that “the fallacies of Keynesian economics were exposed decades ago by Friedrich Hayek and Milton Friedman. Keynesian thinking was then discredited in practice in the 1970s, when the Keynesians could neither explain nor cure the double-digit inflation, interest rates, and unemployment that resulted from their policies.”
Mr. Ferrara should get out more and read more, especially so the scholarly work of the Independent Institute’s own Robert Higgs, who argues convincingly that the intellectual poverty of Lord Keynes’s ideas was evident at the end of the Second World War, when massive cuts in federal government spending, which on the basis of Keynesian orthodoxy should have caused a return to pre-war recession or depression, actually launched a period of robust economic growth as scarce resources were reallocated from the production of military goods to that of civilian goods.
The lesson of Higgs’s analysis is that government cannot promote prosperity by massive deficit spending, but only by getting out of the way of entrepreneurial spirit of the private sector.
Tags: Economics, Money and Banking, The State 
Dear Mr. Shughart et al, The eugenicists and their sponsors have been initiating their calculated program against the public for years right in front to our faces. Only until recently since 9/11 certain segments of society have awakened to a diabolically planned attack against our historical definition of government spelled out in the Constitution.
The dumbed down public including acadameia through no fault of their own have been innocent victims of layer upon layer of government planned and initiated propoganda for decades. The current suttle attacks against us is displayed in various forms ie. the economy, real estate bubble, Viet Nam type sponsored wars, collapse of wall street, 9/11 bogus cover up, undocumented president, patriot act, police power, socialized medicine, flu epidemic hype before it happens as shown on all of the media channels and finally sadly enough the complicit silence of members of the senate and the congress consisting of tax evaders, infedelity etc. Through many administrations they have ignored our well being now and in the future, “We The People” are at the crossroads of hard core communism in the benign mask of socialism and a bright path to freedom. As in the cyclic universe, we have started our cycle for liberty again from 1776 to present, if you think this country is worth fighting for and the future of your children then go ahead America and follow your conscience if not you have signed your fate,
There is much more to say but I will let other patriots speak their mind in these troubled times.
Jim Haynes | Sep 19, 2009 | Reply