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Keynesian Economics Is Wrong

April 10, 2009 by Dan Mitchell

Based on a theory known as Keynesianism, politicians are resuscitating the notion that more government spending can stimulate an economy. This mini-documentary produced by the Center for Freedom and Prosperity Foundation examines both theory and evidence and finds that allowing politicians to spend more money is not a recipe for better economic performance.


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Posted in Economics, Fiscal Policy, Spending, Video | Tagged Economics, Fiscal Policy, Keynesian, Keynesianism, stimulus, Video | 24 Comments

24 Responses

  1. on September 13, 2010 at 11:59 am Keynes Was Wrong on Stimulus, but the Keynesians Are Wrong on Just about Everything « International Liberty

    [...] the thrust of Milbank’s column is wrong. He is wrong in claiming that Keynesian economics works, and he is wrong is claming that it is the only option. Regarding the first point, there is no [...]


  2. on September 13, 2010 at 5:35 pm Keynes Was Wrong on Stimulus, but the Keynesians Are Wrong on Just about Everything « The Market Center Blog

    [...] the thrust of Milbank’s column is wrong. He is wrong in claiming that Keynesian economics works, and he is wrong is claming that it is the only option. Regarding the first point, there is no [...]


  3. on October 6, 2010 at 11:58 am Where are the ’60s Hippies Now that They’re Needed to Fight Keynesianism? « International Liberty

    [...] 6, 2010 by Dan Mitchell Keynesian economic theory is the social-science version of a perpetual motion machine. It assumes that you can increase your prosperity by taking money out of your left pocket and [...]


  4. on October 6, 2010 at 8:02 pm Where are the ’60s Hippies Now that They’re Needed to Fight Keynesianism? « The Market Center Blog

    [...] 6, 2010 by Dan Mitchell Keynesian economic theory is the social-science version of a perpetual motion machine. It assumes that you can increase your prosperity by taking money out of your left pocket and [...]


  5. on October 6, 2010 at 8:36 pm Where are the ’60s Hippies Now that They’re Needed to Fight Keynesianism? #tcot « Common Sense Underground

    [...] economic theory is the social science version of a perpetual motion machine. It assumes that you can increase your prosperity by taking money out of your left pocket and [...]


  6. on October 7, 2010 at 6:12 am Keynes Was Wrong on Stimulus, but the Keynesians Are Wrong on Just about Everything | Cato @ Liberty

    [...] the thrust of Milbank’s column is wrong. He is wrong in claiming that Keynesian economics works, and he is wrong is claming that it is the only option. Regarding the first point, there is no [...]


  7. on November 13, 2010 at 1:31 pm The $27 Light Bulb and other Examples of “Stimulus” Waste and Fraud « International Liberty

    [...] always been more concerned about the negative economic impact of government spending and the failure of Keynesian fiscal policy, but it’s also important to focus on waste and fraud. The average taxpayer may not want to [...]


  8. on November 13, 2010 at 2:42 pm The $27 Light Bulb and other Examples of “Stimulus” Waste and Fraud « The Market Center Blog

    [...] always been more concerned about the negative economic impact of government spending and the failure of Keynesian fiscal policy, but it’s also important to focus on waste and fraud. The average taxpayer may not want to get [...]


  9. on November 29, 2010 at 8:41 am A Long-Overdue Debunking of Keynesian Economics « International Liberty

    [...] understandably fond of my video exposing the flaws of Keynesian stimulus theory, but I think my former intern has a great contribution to the debate with this new 5-minute [...]


  10. on November 29, 2010 at 3:33 pm The Consumer Spending Fallacy Behind Keynesian Economics | Conservatives for America

    [...] understandably fond of my video exposing the flaws of Keynesian stimulus theory, but I think my former intern has an excellent contribution to the debate with this new 5-minute [...]


  11. on December 1, 2010 at 10:21 am Daniel Mitchell: The Consumer Spending Fallacy behind Keynesian Economics | joewhite.com

    [...] understandably fond of my video exposing the flaws of Keynesian stimulus theory, but I think my former intern has an excellent contribution to the debate with this new 5-minute [...]


  12. on December 2, 2010 at 1:32 am The Consumer Spending Fallacy behind Keynesian Economics (Cato @ Liberty Blog)

    [...] understandably fond of my video exposing the flaws of Keynesian stimulus theory, but I think my former intern has an excellent contribution to the debate with this new 5-minute [...]


  13. on August 24, 2011 at 8:39 am Earthquakes, Fairy Dust, Space Aliens, Leeches, Paul Krugman, and Stimulus « International Liberty

    [...] didn’t think it was  possible, but he has outdone himself with another bizarre embrace of Keynesian economics. Yesterday, without irony, he wrote, “we would see a bigger boost in spending and hence [...]


  14. on September 1, 2011 at 7:29 am Keynesian Economics in a Cartoon « International Liberty

    [...] I’ve written extensively about the flaws of Keynesian economics, and I’ve even narrated a video on the flaws of Keynesian theory. [...]


  15. on September 7, 2011 at 10:45 am Grading the Likely Components of Obama’s New Stimulus Plan « International Liberty

    [...] That being said, the economic flaw of school construction spending-cum-stimulus is that government spending must be financed with either taxes or borrowing, both of which divert resources from the productive sector of the economy. Simply stated, Keynesian spending does not work. [...]


  16. on September 11, 2011 at 12:02 pm Why Keynesian Economics Fails Every Time it’s Tried | JohnKiv.us

    [...] video from Dan Mitchell gives a simple explanation of why keynesian economic theory is inherently flawed. Basically, [...]


  17. on October 5, 2011 at 1:40 pm Consumer spending is caused by growth of economy « HaltingArkansasLiberalswithTruth

    [...] understandably fond of my video exposing the flaws of Keynesian stimulus theory, but I think my former intern has an excellent contribution to the debate with this new 5-minute [...]


  18. on October 27, 2011 at 6:43 am Did I Lose, or Are the People of New York City Unworthy? « International Liberty

    [...] people from Intelligence Squared will post a video of the debate. In the meantime, you can watch this video of me debunking Keynesian economics and this video eviscerating Obama’s faux stimulus. Rate this: Share [...]


  19. on November 14, 2011 at 12:56 am Blogodidact: Trick or Treat doesn’t end with Halloween - It's the Stupidity Stupid pt.2

    [...] That's some scary stuff, and I for one am very much afraid of those ghosts, because that is what Keynesianism is all about, and we are being haunted, robbed and beaten up by it to this day. But even that [...]


  20. on November 28, 2011 at 12:21 pm Notwithstanding Media Coverage of Black Friday, Consumer Spending Does Not Drive Economy « International Liberty

    [...] Alaghebandian of the America Enterprise Institute, debunks this notion, while also explaining that Keynesian economics is flawed because it misinterprets the role of consumer [...]


  21. on January 22, 2012 at 10:40 am What’s More Compassionate for the Poor, Dependency or Self-Reliance? « International Liberty

    [...] making bad predictions. After all, economists are lousy forecasters. I blame him for peddling the silly Keynesian theory that bigger government boosts economic performance. Rate this: Share this:PrintEmailFacebookTwitterMoredeliciousDiggFarkLinkedInRedditStumbleUponLike [...]


  22. on January 22, 2012 at 11:05 pm What’s More Compassionate for the Poor, Dependency or Self-Reliance? | Sago

    [...] But it’s important to understand that I’m not blaming him for making bad predictions. After all, economists are lousy forecasters. I blame him for peddling the silly Keynesian theory that bigger government boosts economic performance. [...]


  23. on February 6, 2012 at 2:33 pm Classic Cartoon on So-Called Stimulus Is Amusing and Economically Accurate « International Liberty

    [...] the way, if you want to understand in greater detail why the cartoon is accurate, this video on Keynesian economics is helpful, as is this video explaining the failure of Obama’s $1 trillion boondoggle. Rate [...]


  24. on February 23, 2012 at 8:52 am Is Mitt Romney a Keynesian? « International Liberty

    [...] For more information on this issue, here’s my take on Keynesianism. [...]



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