Friday, December 31, 2010

Keynes Not Able

I just finished this book, Where Keynes Went Wrong. I bought the book in hopes that it would delve into this mysterious universe of Keynesian economics. The title of course gives away the fact that the author feels the Keynesian influence and virtually every government in the world is not good for the long term health of the economy. This is a great book. I didn't think it would be as lively and vital as it is. It reveals the man behind the curtain whose influence and doctrine has caused the pulling of all of the crazy levers of monetary policy and government policy that does much more harm that it can possibly do good. It is not a vindictive book. Having studied macroeconomics and microeconomics in college, I think it is safe to say that many people believe in Keynes because that is what is taught. The Austrian economists are rarely discussed. Our current economic troubles may be somewhat satiated but the long term prognosis is terribly malignant and there are no therapies that can correct it if we continue to believe that government stimulus will increase demand, decrease unemployment and increase wealth for all. Government has no long term plan, and it's short term goal is the next election. Get it. Read it.

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