Recently posted this article over at United Liberty.
Keynesian economics is receiving much praise as the solution out of our current economic crisis. While I'm never an advocate of government spending for the sake of it - private money works better - massive spending by a debtor nation with public debt now almost equal to GDP just seems backwards.
We got into this problem by artificially setting interest rates below market rates which drove malinvestment coupled with over-leverage by consumers, industry and the government. More of the same will not solve the problem. It might, and probably will, delay the inevitable, but the day of reckoning will come.
No comments:
Post a Comment