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  • Keynes

    Don’t Do It, Shinzo Abe!

    Japan’s incoming prime minister, Shinzo Abe, has an unenviable task. While Mr. Abe may prove to be exactly what the country needs in terms of foreign policy, his economic promises mirror the policies that have mired Japan in two decades of stagnation. Mr. Abe has made headlines promising more aggressive … More

    World War II: Economic Stimulant or Depressant?

    Did World War II spending boost economic growth? Although some statistics appear to affirm this, wiser historical analysis demonstrates that artificial increases in output during the war masked a debilitated private economy. Meaningful growth increased after the war, when free-market mechanisms returned and marginal tax rates were reduced. Gross national … More

    Chart of the Week: Slow Job Growth Means a Slow Economic Recovery

    President Obama will deliver his third State of the Union address on Tuesday night. According to a preview video released this weekend, the speech will outline Obama’s vision for improving the economy and creating jobs. With an unemployment rate of 8.5 percent, there’s much work to be done. But after … More

    Krueger Tries and Fails to Disguise an Anti-Growth Tax Plan in Keynesian Garb

    The remarks of Alan Krueger, chairman of Obama’s Council of Economic Advisers, asserting that taxing the rich can spur economic growth demonstrate that he and the Administration are nothing if not consistent in their mistakes. Krueger says that there is growing income inequality in the United States, that this growing … More

    Keynesians Should Listen to Keynes

    As we’ve argued countless times, government attempts to stimulate the economy create uncertainty that often paralyzes business decisions. Don’t take our word, though. In a letter to President Roosevelt during the Great Depression, the father of Keynesianism himself, John Maynard Keynes, wrote the following: You are engaged on a double … More

    VIDEO: Why Obama's Stimulus Failed

    President Obama’s economic stimulus was supposed to revive America’s economy and put people back to work. But nearly three years after Democrats rammed the bill through Congress, it’s a clear-cut failure. The nation’s 8.6 percent unemployment rate stands out as one of consequences. Then there is the high-profile Solyndra scandal … More

    Does Supply Create Demand?

    Which comes first: supply or demand? This question has serious policy implications, especially as President Barack Obama proposes $447 billion in additional stimulus spending in order to try to spur job growth in America. “Demand-siders,” also known as Keynesians (after influential economist John Maynard Keynes), insist that short-run economic fluctuations … More

    VIDEO: Hayek vs. Keynes Rap Battle Royale

    It’s not Eminem or Dre, not East Coast or West. It’s economists Hayek and Keynes, and Congress can’t decide who gets it best. They’re battling it out on the mean streets of DC, to see who can fix the economy…. Sometimes, the best way to get a point across is … More

    Keynes vs. Hayek = Obama vs. Merkel?

    They are getting together again. This weekend in Toronto, Canada, President Obama and German Chancellor Merkel reconvene at the G-20 Summit to figure out how to move the global economy forward. The two leaders are indeed extraordinary and remarkable in many ways. President Obama is the first African American President … More