{"id":19996,"date":"2016-04-18T19:12:48","date_gmt":"2016-04-19T00:12:48","guid":{"rendered":"http:\/\/olduvai.ca\/?p=19996"},"modified":"2016-04-18T19:13:07","modified_gmt":"2016-04-19T00:13:07","slug":"the-keynesian-house-of-denial","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=19996","title":{"rendered":"The Keynesian House Of Denial"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/davidstockmanscontracorner.com\/the-keynesian-house-of-denial\/\">The Keynesian House Of Denial<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<div class=\"pf-content\">\n<p>We use the term \u201cKeynesian\u201d loosely to stand for economic interventionists of all schools. The followers of JM Keynes and Milton Friedman alike fit that category. So\u00a0do some of the more rabid supply siders who claim the power to stimulate ultra-high economic\u00a0growth with the tools of tax policy alone.<\/p>\n<p>The common denominator is economic statism. That is, the assumption that the state, including its central banking branch, is indispensable to economic progress and prosperity.<\/p>\n<p>As the various denominations of the Keynesian economic\u00a0church have it, capitalism is always veering toward the ditch of under-performance and\u00a0recession when\u00a0left to its own devices and natural tendencies; and,\u00a0if neglected by the wise policy-makers of the central state too long, it\u00a0lapses\u00a0toward outright depression and collapse.<\/p>\n<p>Our purpose here is not to correct the\u00a0particular philosophical and analytic\u00a0errors associated with each of these Keynesian or statist variants. On any given day we make it pretty clear the central banking based\u00a0mutation of modern Keynesianism is predicated on two cardinal errors. Namely, the myth of demand deficiency and the false\u00a0presumption that central bank\u00a0pegging of interest rates, yield curves\u00a0and other financial prices will enhance macro-economic performance while not harming the efficiency, stability and efficacy of money and capital markets.<\/p>\n<p>That\u2019s completely wrong. The very worst thing the state can do is meddle with and falsify financial market prices. Sooner or later cheap debt, repressed volatility, stock market \u201cputs\u201d and artificially inflated asset prices drain the genius of markets out of capitalism. What remains in the financial system\u00a0is raw speculation for the purpose of rent gathering and leverage for the purpose of supercharged\u00a0gambling.<\/p>\n<p>On the other hand, what\u00a0gets lost is true capital formation, honest price discovery and allocative efficiency. These are the building blocks of\u00a0true macroeconomic expansion and rising wealth.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Keynesian House Of Denial We use the term \u201cKeynesian\u201d loosely to stand for economic interventionists of all schools. The followers of JM Keynes and Milton Friedman alike fit that category. So\u00a0do some of the more rabid supply siders who claim the power to stimulate ultra-high economic\u00a0growth with the tools of tax policy alone. The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5979,2120,2310,458,467,2586,972],"class_list":["post-19996","post","type-post","status-publish","format-standard","hentry","category-economics","tag-contracorner","tag-david-stockman","tag-depression","tag-john-maynard-keynes","tag-keynesian-economics","tag-milton-friedman","tag-statism"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19996"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19996\/revisions"}],"predecessor-version":[{"id":19997,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19996\/revisions\/19997"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}