Get Ready To Taste The Bitter Side Of Keynesian Economics

Keynesian economics was invented to arrest depression and save the capitalists and capitalism at any costs. This has made capitalist and upper middle class happy to share higher profits all the time. But this has come at the high cost of taxes collecetd from the poor to save the rich. Keynes was also aware that the measures given by him were not to save the mankind eternally. He was afraid of progress in techonlogy and science, which would create abundance of every products and would create situations where the capitalists would find no way to save capitalism further.
Depression, unemployment, debts, higher taxes and poverty are the gifts of Keynes. Now the world is experiencing the results of this Keynesian effect. Capitalist economists are, as said by Keynes, getting nervous breakdowns.

I wish to give some thoughts on the above question from “Concerned reader”. Here goes.
China and India have already risen and the only thing that stops them from rising higher are the arch capitalists in the US and other western Euro blocks. they expanded them to bring about cheaper labor and products resulting in massive unemployment in the US and the western Euro blocks because things that were formerly produced there, arn’t being produced there anymore.

I do hope the Euro does break up. Sovereignty is very important to economic prosperty… Perhaps that particular collapse was a good thing. I just hope they don’t try and prop it back up again.

Keynesianism is more than government intervention. It plays an active role in the economy through regulation to control the market, and it taxes large industries to provide capital for public spending without having to go into deficit. What we see in the EU and US is not Keynesianism, it is the financialization of government. Government no longer acts in the interest of people, it blatantly acts in the in the interest of business, and that’s why the government doesn’t tax business to the degree that would pay for public spending. Public spending is not good investment because it doesn’t return profits. That money is instead used to invest in other countries to bring in profits for business, while also keeping other countries beneath the umbrella of Western supremacy, which the EU and US obviously want. You’re right about austerity, that is definitely in all of our futures if things stay the same. We will be forced to endure the pain of the mistakes of big business because they certainly wouldn’t want to pay for it if they could just get the governments to place the burden on taxpayers. That will come in the form of austerity measures. The fact that almost every country in Europe, the Americas, Asia, and even Africa are in this same situation will cause a complete economic depression. There is already a de facto global government that has put all of these nations in debt in the interest of business to attack those that threaten profits. The Greek people are fighting back. Everyone feeling the sting of austerity must fight back.

Greece will never be ejected from the Eurozone, THEY WILL ASK TO LEAVE THE EUROZONE. And they will default on their debt. It’s the only way out of their mess.
Italians and Greeks have been playing this game for 50 years, devaluation their currency to prop up the economy. They can do it again only if they go back to the “Drachma”.
Stephan / France

Let’s hope the dollar breaks up before along with the euro. After all a “united states” that lumps California with Dakota, and rewards them in the Senate with the same representation surely does neither any favours.

No sense that the euro emerged from the experience of two world wars…

Forward to our troglodytic future, eh Michael? We wouldn’t want “global government” popping into our cave would we!

Also read how keynesian economics invariably leads to loss of laissez faire capitalism, more centralized gov’t,and socialism or as in US, a system of welfare or crony capitalism; the end game will likely be global governance & socialism ‘for the collective good’ of the central bankers and political elite if we let them continue. We should stop the ponzi scheme by abolishing the Fed & central bankers and let governments print their own money – w/out interest. http://1776solution.blogspot.com/2009/02/keynesian-socialist-subversion.html

None of you seem to have understood Keynes at all.

What he did was challenge neo-classical orthdoxy by demonstrating that time, money and the inherent uncertainty about the future conspire so that the economy quantity-adjusts, as opposed to price-adjusting, in response to shocks.

The second key point of his challenge is that he took issue with the neo-classical contention that people will always trade if they can gain from doing so, irrespective of their expectations of the future.

The third point is that he disagreed with the contention that people’s savings decisions are sensitive to interest rates. He introduced the concept of liquidity preference, which is the bias towards holding liquid assets (such as cash) in response to uncertainty.

Milton Friedman did not succeed in refuting Keynes, as his refutation depended on the validity of the rational expectations hypothesis.

What advocates of the REH don’t understand is that Keynesian uncertainty is not the same as quantifiable risk. They think that people’s expectations of the future are risk-assessable and that these expectations are, on aggregate, correct.

Governments of all Western nations seem to have Keynes backwards. They increased deficits and expanded public services during boom times and now want austerity (which always shrinks economies) because of huge debt overhang. Did none of these politicians ever hear the story about the ant and the grasshopper?