Keynes is wrong ALL the time

From Bloomberg.com: "Deathbed of Keynesian Economics will be in UK."
http://bit.ly/aD72Ll

"Britain has been following the mainstream prescriptions of his followers more than any developed nation. It has cut interest rates, pumped up government spending, printed money like crazy, and nationalized almost half the banking industry."

"Short of digging Karl Marx out of his London grave, and putting him in charge, it is hard to see how the state could get more involved in the economy."

"The results will be dire. The economy is flat on its back, unemployment is rising, the pound is sinking, and the bond markets are bracketing the country with Greece and Portugal in the category marked "bankruptcy imminent." At some point soon, even the most loyal disciples of Keynes will have to admit defeat, and accept that a radical change of direction is needed."

"On Feb. 14, a group that included...published a letter to the Sunday Times calling on the government of Prime Minister Gordon Brown to control the ballooning deficit. If it didn't, the stability of the economic recovery would be threatened, and there would be a run on the pound, they warned."

"That brought a stinging response from the Keynesians, who are urging the U.K. to spend its way out of recession...67 economists insisting that deficit spending was the only way to salvage the economy. The letters, published in the Financial Times, argued that a "a sharp shock" now "would be positively dangerous."

"The U.K. has some experience of mass letter writing from Keynes's devotees. In 1981, a group of 364 economists wrote an open letter ripping into the policies of then Prime Minister Margaret Thatcher. They turned out to be totally wrong, of course. With hindsight, no one can now dispute that her policies led to a long and durable economic revival."

"And just as the Keynesians were wrong three decades ago, they are wrong now."


Austrians rule and Keynesians drool!

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