Where Keynes Went Wrong: And why World Governments Keep Creating Inflation, Bubbles, and Busts

Description

Presents an overview of the economic theories of John Maynard Keynes and offers a critique of the Keynesian economic strategy of borrowing and spending which has been used by the current Obama administration to deal with the fiscal crisis of 2009. Contents Part Two What Keynes Really Said 2: Drive Down Interest Rates. . . . . . . . . . . . . . . . . 17 Part Three Why Keynes Was Wrong 10:“Drive Down Interest Rates” (and Reap a Whirlwind of Inflation, Bubbles, and Busts). . . . . . . . . . . . . 89 11: Spend More, Save Less, and Grow Poorer. . . . . 117 3: Spend More, Save Less, and Grow Wealthy. . . . . 27 4: The Immoralist (A Digression). . . . . . . . . 35 5: What to Do about Wall Street?. . . . . . . . . . . 47 6: Look to the State for Economic Leadership. . . . . . 53 Part One Introduction 1: Commonsense Economics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 12:What (Not) to Do about Wall Street. . . . . 137 13:(Do Not) Look to the State for Economic Leadership. . . . . . . . . . . 147 14:Government for Sale (A Digression). . . . . . . . 163 15:In an Economic Crisis, Printing, Lending, Borrowing, and Spending Just Sow the Seeds of the Next Crisis. . . . . . . 183 7: In an Economic Crisis, Print, Lend, Borrow, and Spend. . . . . . . . . . . . . 63 x • Where Keynes Went Wrong 16:Markets Do SelfCorrect. . . . . . . . . . . . . . 219 17:Yes to Economic Globalization. . . . . . . . . 241 8: Markets Do Not SelfCorrect. . . . . . . . . . . . . . . 71 9: Yes, No, and Again Yes to Economic Globalization. . . . . . . . . . . . . . . . 79 Part Four More on Keynes 18:How Keynesian Was Keynes?. . . . . . . . . . . . . . . . . . . . . . . . . . 257 19:Keynes Speaking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .261 20:Keynes Writing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .267 Part Five Conclusion 21:Upside-Down Economics: What Keynes Would Have You Believe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .281 22:What Is Really Wrong Here: The Central Paradox of Keynesianism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .291 Part Six Envoi 23: Saying Goodbye to Keynes . . . . . . . . . . . . . . . . . . . . . . . . . . . .303 Endnotes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307 Citations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341 Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373