Keynesian Economics Is Wrong: Bigger Gov’t Is Not Stimulus

There is an evil wind blowing across the country. And you need to watch.

As Steve points in his most excellent post, and as I pointed out in posting this Neil Cavuto video, now that Obama has let it be known he intends to spend trillions of dollars, ostensibly to pull the nation our of its recession, cities and states across the country have decided to join the Neo-Keynesian movement, using it as an excuse to tax and spend us into prosperity. It does not, nor has it ever worked. Ever. From Michelle Malkin’s site … please visit. Oh and take the time to read the comments.

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I’ve been telling you guys this for years. As Milton Friedman explained, government spending can be a temporary panacea, making people feel good for a while. But government spending does little more than provide make work work for the short term. Long term wealth and prosperity for all can only be created in the markets by the markets. Ironically Friedman points out here that even Keynes never intended government work programs to be permanent. Only temporary. Government can do little except print money. It’s “dead end” money. It neither creates jobs nor wealth.