Keynesianism R.I.P.?

Captain has a great take on IBD’s obituary of Keynesianism.

Money quote:

… 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.

Comments are closed.