no third solution

Blogging about liberty, anarchy, economics and politics

Pure Keynesian Nonsense

January 13th, 2009

Probably stumbled across this via Reddit|Economics.

Mosler’s Law states that,

There is no financial crisis so deep that a sufficiently large increase in public spending cannot deal with it.

Surely this is a joke, right?

I mean, it violates Say’s Law of Markets, runs contrary to Public Choice Theory, spits in the face of Hayek’s Knowledge Problem (although from a Macro POV), and completely ignores the destructive, long-run effects of inflation like teh dread Malinvestment.

I’m not sure which of Mosler’s arguments offend me the most: the overwhelming sense of entitlement, that governments justifiably appropriate and redistribute individual savings, or the notion that, in order for individuals to produce, the government must tax them first.

Stay tuned.

no third solution

Blogging about liberty, anarchy, economics and politics