the keynes is dead!

keep him that way!

If there’s one positive to come out of the Great Recession, it should be the end of Keynesian economics as a serious policy choice. The notion you can grow the economy via North Korea-style command economics should have been long-dead... but Obama’s miserable failure may finally drive a stake through this productivity-sucking, economy-killing meme...

THERE IS NO SUCH THING AS AGGREGATE DEMAND.

Government spending is not demand, it is command spending. To “aggregate” it with private sector demand is like counting your dog’s ringworm as a “pet” on a census form, at least for purposes of stimulating the economy. It does not follow the same rules as private sector spending, as it is always seized and distributed according to law/fiat by bureaucrats indifferent to costs and benefits, not exchanged consensually between self-interested private parties seeking to maximize their utility. That’s why Keynesianism is “unexpectedly” falling flat on its face before our eyes: it relies on a fallacious aggregation.