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Economics Politics

A Refresher on What is Wrong with Keynesian Economics

> Those who heaped high praise on Keynesian policies have grown silent as government spending has failed to bring an economic recovery. **Except for a few diehards who want still more government spending, and those who make the unverifiable claim that the economy would have collapsed without it,** most now recognize that more than a trillion dollars of spending by the Bush and Obama administrations has left the economy in a slump and unemployment hovering above 9%. (emphais mine)

A good article to revisit during the election season. It points out a number of problems with Keynesian economic theory, such as:

> First, big increases in spending and government deficits raise the prospect of future tax increases.

and

> Second, most of the government spending programs redistribute income from workers to the unemployed.

Those are only the first two.