Keynesian gibberish

Remember Keynesian economics? We could just say it's the insanity the Obama gang is inflicting on us. Spend till you bleed, even if the problem is too much debt, and everything will be ok. Actually, Keynes would punch Obama for claiming his rape of America's treasury to pay off all his friends is just Keynesian economics. The point is the same: Keynes said in a recession the government is the good guy who spends money and fixes everything. Here's an analysts take:

Keynesian Economics

The first thing to appreciate is the power of ideas. And one point that this crisis has conclusively demonstrated is the enduring hold of Keynesian economics. People now forget that Keynesianism didn't work well, even in the 1930s; its short-term focus and its failure to deal with the monetary side of the economy led to inflation and, ultimately, to the miseries of stagflation in the '70s. Keynesianism's failure was then manifest, and it was rightly repudiated. Fiscal and monetary extravagance were then reined in, inflation was painfully brought down, and the economy boomed.

And then comes the next big crisis, and Keynesianism is suddenly respectable again —and back with a vengeance. We are now told that Keynesian solutions are the only solutions. And it's not just Keynesianism, but Keynesianism on a mass (or should I say, crass?) scale: massive fiscal stimulus, regardless of the cost; and loose monetary policy, regardless of the inflationary dangers.

This reminds me of an old joke: Keynes was once giving a lecture and noticed that one of his students had fallen asleep. So Keynes asked him a direct question, which woke him up. The startled student responded: "I'm sorry, Mr. Keynes, I didn't hear the question. But the answer is that we need more stimulus."

One size fits all, basically.

by MISES