Keynesian Economics Is Wrong: Economic Growth Causes Consumer Spending, Not the Other Way Around
Please have a look at this video on government spending vs. private investment. Governments, through Keynesian spending programs, purposefully implement policies that reduce investment to increase current consumption. When you reduce investment, though, you reduce income, employment, output and ultimately consumption in the future. Government perversion of economics is a vicious cycle where shifts from investment to consumption has to be done over-and-over. Since markets will adjust to increase savings and investment relative to consumption to counter these government attacks on natural allocations of resources then sometimes we will experience cataclysmic events that will eventually lead to disaster.
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