From Ed Morrissey, who quotes Investors Business Daily in his article:
But that doesn’t mean Keynesianism is dead. It may be momentarily discredited, but it has a powerful attraction to politicians. Modern-day Keynesianism allows them to look busy during a crisis and act as though they’re, well, acting. It also allows politicians to get their hands on a lot of cash — and that allows them to share the spoils with key backers and constituents. It’s practically built for pork. Perhaps even more seductively, it gives politicians the illusion of control over the economy, allowing them to pick winners and losers. Unfortunately, that is just an illusion; as Hayek explains in The Road to Serfdom, the economy is too complicated for central controllers to operate it, and those attempts to do so result in economic ruin.
That was the reason Communism failed, and it’s the reason modern-day Keynesianism fails as well. Putting the resources in the hands of bureaucrats rather than the market stakeholders makes markets less efficient, distorts incentives and outcomes, and inevitably leads to economic failure. If we learn that much this time, perhaps we can at least put modern-day Keynesianism into a coma for another few decades.
Do read his entire article.
Isn’t it interesting that Keynesian economists are oh so knowledgeable and oh so expert in macroeconomics? Yet, when big-ticket drop, that’s unexpected. When home sales drop or stay anemic, that’s unexpected. When unemployment stays high or new numbers for first-time unemployment claims come in, that’s unexpected. All this unexpected wrong economic activity as a result of their superiorly-designed schemes.
Well, it isn’t unexpected to all of us who declared Keynesianism is a huge mistake. It isn’t unexpected to all of us who actually know and understand the history of Keynesianism on economies. Despite the fact we were right and the Keynesians were wrong (again and continually), it’s the Keynesians who are smart and we’re the rubes. When Conservatives start making the decisions and everything turns around, it’ll yet again be unexpected for the Keynesians but great for the country.