Kruckeberg, G. E. (2012-05-26). Conservative Dictionary and Fact Book (Kindle Locations 741-747). . Kindle Edition.
John Maynard Keynes (18883-1946), AKA 1st Baron Keynes, was a British aristocrat who misinterpreted the function of Economics and imposed the aristocratic concept of noblesse oblige onto the discipline. The Great Depression of the 1930s was a global phenomenon, affecting every industrialized country in the world. In 1930, Keynes published Treatise on Money, in which he attacked the austerity measures enacted by the British government in response to the Depression. "For Government,” he wrote, “borrowing of one kind or another is nature's remedy, so to speak, for preventing business losses from being, in so severe a slump as the present one, so great as to bring production altogether to a standstill.”
In 1933, Keynes published The Means To Prosperity, a specific policy blueprint for applying “counter cyclical public spending” to combat the effects of recurring industrial stagnation. Although the book was directed at the British government, Keynes sent copies to the heads of state of other countries affected by industrial stagnation, including newly elected President Frank Roosevelt.
Roosevelt gleefully accepted Keynes’ non-Economic misapplication of the science of Economics as an intellectual justification for his own Fascist ideas, and he quickly put them to work in his new administration.
And did Keynes’ distortions of classic Economic theory work? For answer let me quote Frank Roosevelt’s Treasury Secretary, Henry Morganthau Jr., from his testimony before Congress in 1939.
"We have tried spending money. We are spending more than we have ever spent before and it doesn't work. After eight years of this administration, we have just as much unemployment as when we started and an enormous debt to boot."
So, after a decade of trial and dismal failure, were Keynes’ Economic misapplications discarded as the impracticable fantasies they clearly are? Unfortunately, no. They are still being applied by our federal government today, 75 years after they were proved to be unworkable. Worse, they are still being taught by prestigious schools such as MIT as the cutting edge of Economic thought.
This latter tragedy is, if possible, even more damaging than government Keynesianism, since it provides the government with pseudo-intellectuals like Nobel Laureate Paul Krugman to pimp for their Fascist ambitions. For make no mistake – the only reason Keynesianism hasn’t been discarded after having cost the United States over 17 trillion dollars in debt is because it facilitates Fascism. You cannot surrender your responsibility to the government without surrendering your freedom to the government.
But Keynesianism has an even more deleterious effect. It destroys the very means of wealth production that Economics Was created to study – industrialization. Governments cannot create wealth, they can only consume it. And governments cannot augment wealth production, they can only impede it. Thus, the bigger the government, the less wealth is produced by the private sector – the sole producer of wealth – and the more of the wealth that is produced is consumed by non-productive government.
I should like to pose one, simple question to pseudo-Economists like Paul Krugman. How in the world did Americans like Carnegie, Ford, Eastman, and Edison, along with millions of less well known entrepreneurs, manage to build the most successful wealth producing system history has ever seen without the benevolent guidance of an all-knowing government?
Think about it.