Wednesday, 24 February 2010

Deficit spending is always and everywhere a disasterous idea

A great article on Bloomberg by Matthew Lynn, about the quackery of Keynesian deficit spending, and how it is going to ruin the UK and finally prove to the world once and for all what a complete crock the whole theory is.

Here's a snippet, but you ought to read the whole thing:

The Keynesian consensus is that things would have been far worse without the stimulus provided by government. And if the economy isn’t pumped up with inflated demand, it will collapse back into recession. If it’s not working, that just proves the stimulus should be even larger.

It is the argument quacks always push: If the medicine isn’t working, increase the dosage.

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