Wednesday, March 17, 2010

American Thinker: The Keynesian Fraud

Morgenthau's statement is the equivalent of Ben Bernanke and Tim Geithner stating that "everything we have done has done no good." When the architect and manager of the program admits it failed, on what basis can honest historians claim that it was successful?

If only current political appointees could be as honest as Morgenthau. But the Keynesian myth is too important and must survive at all costs. It is a source of government power and an inspiration for more government spending. It is a source of many economists' income and prestige. Keynesian economics is the bedrock supporting the entire myth of expansive government. If it is debunked, then so is the twentieth-century conception of government.

We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong ... somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises ... I say after eight years of this Administration we have just as much unemployment as when we started ... And an enormous debt to boot!
- Henry Morgenthau, Jr., Treasury Secretary, May 1939

American Thinker: The Keynesian Fraud


Matt said...

Outstanding post. We'd never see this much honesty now.

Tom Anderson said...

Thank you for your comment.