The Economy

[kandrathe]

It's tough to know who's right, but it's simply not true that Keynes' theories were "eliminated" decades ago. They are alive, and in this particular situation, doing quite well.

So, then... Inflation is Good!

If you can believe anything published by the Cato Institute... Barack Obama's Keynesian Mistake, says "Federal policymakers are moving ahead with a huge $800-billion stimulus plan to return the U.S. economy to growth. Will it work? Decades of macroeconomic research suggest that it won't. Indeed, the revival of old-fashioned Keynesianism to fight the recession seems to stem more from political expediency than modern economic theory or historical experience."

"The current stimulus plan would impose a large debt burden on young Americans, but would do little, if anything, to help the economy grow. Indeed, it could have similar effects as New Deal programs, which Milton Friedman concluded "hampered recovery from the contraction, prolonged and added to unemployment and set the stage for ever more intrusive and costly government."

How do you know that the interference in the economy of 2008/2009, is not akin to what the government did in 1933?