Video: Why Keynesian policies fail « Hot Air: "The Center for Freedom and Prosperity has another in its Econ 101 video series, this time showing why Keynesian economic policies generally fail to generate sustainable economic growth. The nature of Keynesian interventions target the wrong component of the economy, consumer spending, which AEI’s Hiwa Alaghebandian shows as a consequence of growth more than a specific origin of it. Consumer spending rises when income rises — which can result from enhanced consumer spending, of course, but only if organic in nature. Otherwise, the Keynesian interventions of massive borrowing and government spending not only fail to sustain themselves as we have seen with Porkulus, they also end up reducing future income with heavy debt loads, which will depress spending in the long run:"
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