Keynes

Keynesians claimed that stagflation—rising price levels and increasing rates of unemployment—couldn’t happen. Then it happened time and again, something predicted and coherently explained by Austrian economists.

President Trump’s plan to “rebuild” Ukraine following the destruction from warfare with Russia is a combination of Keynesianism and crony capitalism.

A. Mitchell Innes—a chartalist pioneer—wrote a pamphlet “What Is Money?” (1913) which found a credulous and ideologically sympathetic audience in J. M. Keynes.

While J.M. Keynes likely is the most influential economist of our age, his economics were that of inflation, statism, and outright central planning.

Keynesian orthodoxy claims that cuts in government spending mean less “aggregate demand,” and less “aggregate demand” leads to recessions. Economic experience, however, shows us this is a false theory, something Austrian economists have known for a long time.

Keynesian “economics” is not just wrong; its precepts are not just based upon fallacies but also on lies. Since Keynes self-described as an “immoralist,” we shouldn‘t be surprised that his economics is immoral, too.

While Austrian economists have engaged Modern Monetary Theorists on economic terms, one should not forget that this theory promotes totalitarian governance. 

Keynesians claim that through the “multiplier,” a country can spend itself into prosperity. All that is needed is for government to tax, borrow, print money and spend, and prosperity will follow. Austrian Economists, however, are not fooled by such myths.

Far from being a true measure of economic health, GDP is a misleading economic statistic that implies consumer and government spending grow the economy. When government spends, GDP increases.

In The General Theory, J.M. Keynes allegedly “discredited” Say‘s Law. Of course, Keynes actually debunked a straw man that was a caricature of what Say actually wrote. It‘s time to set the record straight.