Excellent article by Gary North. I especially like this part, I had to share, maybe you'll recognize it.
KEYNESIAN ECONOMICS
The heart of John Maynard Keynes' analysis in 1936 was the idea of a permanent free market equilibrium with high unemployment. For some reason, which he never explained coherently, sellers refuse to lower their prices when faced with buyers who refuse to buy at yesterday's pre-Depression prices. This is especially true of workers who refuse to cut their wage demands.
Keynesianism is based on two fundamental ideas: (1) sellers do not learn that something is better than nothing, and therefore will not lower their selling prices; (2) economists do not learn that government spending that is financed by debt is accomplished in one of only two ways: (a) money lent by savers, which could have been lent to businesses or consumers; (b) money lent by a central bank, which lowers the purchasing power of the currency unit. This is a philosophy of something for nothing.
We are told by economists that there are no free lunches. But, except for Austrian economists, all economists really do believe in something for nothing. They debate with each other about which "something" can be obtained for nothing – "nothing" always being a piece of legislation.
Non-Austrian economists believe that a gun, when held by a salaried government official and pointed at a citizen to extract his wealth, can sometimes produce economic growth, whereas a gun held by a thief and pointed at a citizen to extract his wealth always produces economic loss. The first produces something for nothing, whereas the second produces nothing for something. What is the difference? This: the person holding the gun.
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