Posts Tagged John Maynard Keynes
“The only one with the power to create presents out of thin air is Santa himself.”
Or, if you prefer an even more sobering realization, there’s always the Creator himself.
Check out this new video from the brilliant folks at EconStories.tv:
From the EconStories.tv website:
Recovery and growth in the classical and Austrian view is driven by restructuring production so that entrepreneurs discover again the best — i.e. the most valuable and sustainable — ways to serve customers. That process is lead by new entrepreneurs and driven by savers who make capital available to fund new investments and new ventures. Sustainable saving and investment means creating more value for others while using fewer resources. This process lies at the core of healthy economic growth, including better job opportunities and Read the rest of this entry »
Wealth [not earned but] won in haste or unjustly or from the production of things for vain or detrimental use [such riches] will dwindle away, but he who gathers little by little will increase [his riches].
This would apply to plenty of other get-rich-quick-schemes, but our country seems to have bought into the faulty Keynesian notion that the government can cure bad decision-making by centralizing it.
In short, the government’s attempts to “create” wealth amount to what Solomon calls “wealth won in haste.” Governments are certainly capable of using some funds wisely, but this is rarely the case. Plenty of Keynesians would say this is primarily about stabilization, but even if that’s true, what are we trying to stabilize?
In the end, ours is a system that is overspent and spoiled.
Basically, there isn’t much point to “stopping the bleeding” when the body has too much blood in the first place. (Yes, it’s a problematic metaphor to begin with, but that’s my point.)
What I want to get across is that most long-term economic improvement takes time. There will be economic booms and times of rapid expansion, but that usually has to do with incremental (read: “little by little”) improvements made among free individuals.
Bolstering trade and innovation may not be as Read the rest of this entry »