The Democrat party in the United States has had an enduring love affair with John Maynard Keynes. Since Franklin Roosevelt and the New Deal, the economist’ s teachings have been their bible and guide.
But they do not always read Keynes correctly. Today’s Democrats merely refer to him to suit their political purposes.
They feel, for example, that you fight any recession by government spending money, pouring it into the economy to create jobs by encouraging demand.
Experience shows otherwise. Mass spending does not produce jobs. It does produce deficits, but no incentives for business to expand for hiring. Business expansion incentives mean lower tax rates, not higher rates that stifle business, especially small firms that account for the bulk of U.S. jobs.
The media ought to get into more depth when it espouses the thinking of John Maynard Keynes.
No comments:
Post a Comment