Ryan McKaken's critique of Keyne's theories is that saving does not destroy the economy, but rather, it fuels it. He argues that Keynes is focusing too much on short term aggregate demand and is ignoring the long term structure of the economy. Another great point that McMaken makes is that government spending is not an "easy way out". He explains how government spending only comes with more taxes, debt, and money creation, all of which lead to increased inflation and instability. His answer to Stossel's question is that Keynesian ideas are popular because they are beneficial to politicians, and appeal to the public. People go along with them because they only see the good side of them, but fail to recognize that with every welfare and job program comes inflation and debt. He explains that his position is definitely harder to sell, even though it is more economically prosperous in the long run.
Chapter 12 - Post Only
Chap 12
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