Liberty Maven

The title of this article says it all.  History has proven on quite a number of occasion that Keynesian policies are disastrous, but yet we continue to delude ourselves into thinking that this time it will work.  Jeffrey A. Tucker’s article on LewRockwell.com requires no more introduction…

There was a time, some 50–60 years ago, that many people thought smoking was good for you. Today we know that this was just an excuse we liked because it provided cover for what we wanted to do: smoke. Today, people smoke anyway even though we know for sure that it is not good for us. At least the illusions are gone.

Keynesianism is both similar and different. Sixty years ago, governments attempted macroeconomic stimulation through spending, debt accumulation, and eventual inflation and taxation. They thought it was good for us. It turns out that it wasn’t good. Nothing has failed so often and in some many places and under as many unique situations as Keynesianism.

Why did governments continue to do it, and why do they do it today? Because they want to, and for the same reason that people smoke. The subjective pleasure it provides the institution exceeds the serious health risks. The heck of it is that they still claim, despite all evidence, that it is good for us too. [Continue reading at lewrockwell.com]