January 23, 2017

Three sickening facts about Keynesianism

Comment on Lars Syll on ‘The inequality gap — five sickening facts’

Blog-Reference and Blog-Reference and Blog-Reference on Jan 24

Paul Davidson argues: “In the GT Keynes noted that the two major faults of the capitalist monetary system was (1) its failure to provide full employment and (2) its arbitrary and inequitable distribution of income and wealth.” (see post of Jan 22)

The three facts about the General Theory are
(i) Keynes messed up the employment theory, see Mass unemployment: The joint failure of orthodox and heterodox economics.
(ii) Keynesian deficit spending literally produced the extremely biased income distribution, see Keynesianism as ultimate profit machine.
(iii)  After-Keynesians neither detected nor rectified Keynes’ elementary mistakes/errors/ blunders but parrot them to this very day. For the sole exception see How Keynes got macro wrong and Allais got it right.

In sum: Keynesians are NOT scientists but clowns/useful idiots/agenda pushers in the political Circus Maximus.

Egmont Kakarot-Handtke

For more about Keynesianism see AXECquery.