by Dan Mitchell | Nov 1, 2018 | Blogs, Economics, Keynesian
I wrote in 2010 that Keynesian economics is like the Freddy Krueger movies. It refuses to die despite powerful evidence that you don’t help an economy by increasing the burden of government. In 2014, I wrote the theory was based on “fairy dust.” And in 2015, I said...
by Dan Mitchell | Apr 5, 2018 | Blogs, Economics, Keynesian
When I give speeches on Keynesian economics, I usually begin with a theoretical discussion on why consumer spending is a consequence of growth rather than the cause of growth. I then focus on two reasons to be skeptical about borrow-and-spend schemes to artificially...
by Dan Mitchell | Sep 18, 2017 | Big Government, Blogs, Economics, Government Spending, Keynesian
Keynesian economics is like Freddie Krueger, constantly reappearing after logical people assumed it was dead. The fact that various stimulus schemes inevitably fail should be the death knell for the theory, which is basically the “perpetual motion machine” of...
by Dan Mitchell | Jul 3, 2017 | Blogs, Economics
Keynesian economics is fundamentally misguided because it focuses on how to encourage more spending when the real goal should be to figure out policies that result in more income. This is one of the reasons I wish people focused more on “gross domestic income,” which...
by Dan Mitchell | Jun 12, 2017 | Big Government, Blogs, Economics, Government Spending, Keynesian
Time for an update on the perpetual motion machine of Keynesian economics. We’ll start with the good news. The Treasury Department commissioned a study on the efficacy of the so-called stimulus spending that took place at the end of last decade. As discussed in this...
