The View From 1776
Wednesday, October 09, 2013
Deadly Fruit of Keynesian Economics
John Maynard Keynes, the expositor of his eponymous school of economic theory, believed that inflation was a good thing. The fundamental thrust of Keynesian economics is justifying the socialist contention that government control of the economy is necessary to attain social justice, i.e., equal incomes, equal property, and equal poverty. Keynesian style gradual inflation, unlike a bloody Marxian revolution, can destroy upper echelon wealth bloodlessly and gradually.
Presumably those of us not among the liberal-progressive-socialist elite would look only at the fact that salary and wage increases stemming from government deficit spending and Federal Reserve loose-money polices were temporarily making us better off. Keynes expected that workers would not understand the connection between government’s economic polices and subsequent inflation that diminished in the long run the buying power of the dollars they were being paid in the short term.
The Federal Reserve’s official policy target today is creating enough phony money to hit an annual inflation rate of 2%, a rate that will steal about half the value of a normal working life’s income and savings.