Sunday, August 15, 2010

For all you Keynesians out there....................

........here is someone not so impressed with the theory- or
practice.  Full essay here.  Excerpt here:

"Unfortunately, today the U.S. Federal balance sheet has
exploded and all of the 'stimulus' has produced underwhelming
results thus far. The fantastical multiplier effect of government
spending under the Keynesian model is demonstrably not
meeting expectations. A theory which says that a large
government body can deploy capital more effectively and
efficiently than a private individual simply has no merit.
Government cannot do things better than the private sector
can. For example, in New York, Off Track Betting is the only
bookie joint in history that looses money. The amount of waste,
fraud and abuse imbedded in government oversight can simply
not be denied. Every dollar the government spends is 'taken'
from a private individual (in one form or another) and how much
of that dollar gets put back into the economy after taking into
consideration 'administrative costs', waste, fraud and abuse?
 Recent economic data seems to provide clear evidence that
Keynesian theory does not work."

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