Keynesian Economics in a Nutshell

Keynesian economics is now resurgent. However, one of its fundamental flaws is its assumption that private citizens routinely spend too little — that they work and produce to earn incomes and then neither spend nor invest those incomes.

via Keynesian economics, opportunistic politicians are a bad mix for America | Culpeper Star-Exponent.

It is amazing to me that people treat Keynesian economics seriously. Yet this bizarre notion is at the heart of our government’s plans to “stimulate the economy”. It’s no wonder that people are skeptical.


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