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Keynesan economics do not work

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Posted: Saturday, May 5, 2012 12:00 am

Mr. Lucas' fixation on one economist, John M. Keynes, as if he is the know-all of all things financial, is getting embarrassing. Keynes, who died in 1946, never saw what his theories on economics would bring in real life.

Most liberals have theories based on the fantasies of the utopian world they wish to live in — existing only in their minds. It can never exist in the real world, because human nature cannot be put in a neat box and followed by every human. No one is exactly the same, and as hard as the despotic tyrants have tried, humans cannot be forced to live the way the state wishes willingly. As individuals, we will rebel, which is why individualism is such a threat to authoritarian governments.

So how have Mr. Keynes' theories of governments spending money they don't have artificially increased employment and economic prosperity? A few examples: the Great Depression of the 1930s. Mr. Morgenthau Jr.'s — Roosevelt's Treasure Secretary — evaluation of FDR's economic plan said, "We have tried spending money. We are spending more than we have ever spent before, and it does not work ... We have never made good on our promises ... I say after eight years of this Administration we have just as much unemployment as when we started ... and an enormous debt to boot!"

Amity Shales, author of "The Forgotten Man: A New History of the Great Depression," stated the TVA dealt a mortal blow to a private employer who wanted to electrify the South, and did nothing to improve the systemic unemployment in the country.

President Nixon, the man who gave us the EPA, long lines at gas stations and fixing prices in the private sector — a la Stalin — once proclaimed that, "We are all Keynesians now."

Last but not least, Jimmy Carter on steroids, our own Obama. Enough said?

Ron Portal


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