The Latest From the Keynesian Front

A couple of years ago, Japan’s Prime Minister Shinzo Abe instituted a program that made Keynesians everywhere wer their pants with joy. Abenomic consisted of fiscal stimulus (i.e., spending), quantitative easement (aka inflation) and structural reform. The result?

Japan is now in a recession. Oh, and their debt is up 230% of the GDP.

Now doubtless the Keynesians will have explanations for it. Keynesianism can never fail; it can only be failed. The Hoover years didn’t disprove anything. 1946 didn’t. The 1960’s didn’t. The 1970’s didn’t. 1993 didn’t. Like the Communists of old, Keynesians believe their pet theories are proven laws of nature and if the facts don’t fit the theory … well, ignore the facts. Their biggest excuse is that Japan raised sales taxes by 3%. I would submit that if that kind of modest tax hike derails what the Kenyesians themselves labelled as the best test yet of their theories, your theories are bullshit.

Oh, one economy that is starting to grow? Greece’s. This also shouldn’t be happening because of the austerity. Nor, as a matter of fact, should our economy be growing.

At one point does the mere thought begin to speculate about the merest possibility of crossing our minds that Keynesianism doesn’t work?

(All of the above comes with the caveat the most “Keynesians” these days are actually pseudo-Keynesians. They love the part where you spend during a recession. They’re not so keen on cutting spending during growth. Practically, Keynesianism is less an economic theory than an excuse to perpetually grow government.)

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  1. AlexInCT

    Despite what the idiots – including the ones with token Nobel prizes in economics – say, you cannot tax and spend yourself into prosperity. This never works. The only way to make wealth is to let people loose. Of course, this means some will get stinking rich and many will lose out. The political lefts has banked their fortunes and hold on power on the hate that the envious and jealous masses have for this simple but real economic dynamic, and has pretended it could make the whole thing fair. In the meantime the connected few have made even more money than they would in the unfair system they portend to be fighting, while the middle class is getting eaten up.

    In the 80s we were told Japan was going to eat America up economically because of the very Keynesian economic practices it was starting to get engaged in. Instead, this move has resulted in hampered growth, lots of debt, and misery for the foreseeable future. Life is not fair. We might all be created equally, but we will not all rise or fall equally. And that happens primarily because of our choices, and not because of the evil system or others that are better off, like the class warriors count on you to believe so they can keep their hold on power. The crony system we have now is a far worse abuser than a free system, but the problem with a free system is the lack of opporunity for graft that the political and connected left banks on.

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  2. AlexInCT

    Now doubtless the Keynesians will have explanations for it. Keynesianism can never fail; it can only be failed. The Hoover years didn’t disprove anything. 1946 didn’t. The 1960′s didn’t. The 1970′s didn’t. 1993 didn’t.

    Actually I heart Krugabe point out that what it all proves, especiallly if you look at the Obama stimulous porkulous project, it was that not enough was spent.

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