The Keynesian School of Economics Leads to Violence

From the blog Points and Figures - by Jeff Carter - We are seeing the end game played out over and over in different cultures all over the world. There is one thread of similarity. All of them have practiced Keynesian economics for decades. The belief that more government spending and bigger government to solve society ills has degenerated into a stagnant economy with no growth and in many parts of the world it’s unsafe to walk down the street. Riots have taken place in “civilized” first world countries. Spain, Italy, Greece, even France and England. Unemployment in some of them is over 20%, and for younger people that have never been hired it can be significantly higher. Even in America, we have seen mini-riots with the Occupy Wall Street crowd and in places like Wisconsin and Ohio that have tried to undo years of bad economic policy. The problem is that eventually the socialist/Keynesian school runs out of other people’s money to spend. They can’t raise taxes high enough, and the market forces them to pay ever higher interest rates to access public markets. When governments increase spending, businesses cut back. The net present value tables always catch up to them. At this point in the cycle, they generally have created a situation where there are haves and have nots. Forced to cut spending on the people that receive a government check, those people riot. In Rome, Italy the streets are becoming unsafe. Read more

The Keynesian School of Economics Leads to Violence