Friday, May 10, 2013


A good article that disproves the Keynesian economic policies being implemented right now in the Western world:
Why Keynesianism Works Better in Theory Than in Practice

For me it's enough to look at the examples:
  • If stimulus was the solution, along with deficit spending and baling out banks and companies, then Japan would not have so-called "zombie banks" and "zombie companies", as well as 2 "lost decades": the Japanese stock market is still 60% below where it was 24 years ago! Talk about long-term investment in stocks being less risky...
  • If money printing was the solution, Zimbabwe would have been the richest country in the world in 2009. I know what I'm talking about, because "At its November 2008 peak, Zimbabwe's rate of inflation approached, but failed to surpass, Hungary's July 1946 world record." (see Most severe hyperinflations in world history)
  • If statism was the solution, along with more regulation, more taxes, capital controls, nationalization of pension funds and bank accounts, then North Korea (where everything is controlled by the state) would be a very rich country, and the Soviet block would not have failed miserably.

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