If you are one of the few souls who actually pay attention to more than FOX or CNN headlines, you will, or have, heard much criticism of "Keynesianism" lately. Boiled down, Keynes taught that there would be Federal deficits in recession years and surpluses in boom years. The role of the Federal reserve is to push money out there in bad times and goose a struggling economy. There would be far more boom years than recession years, so little need for deficit spending. Thus, the Federal debt would not grow. It would shrink. No one believes that crap anymore. There are no surpluses. Never have been. Even under Clinton, the so called "surplus" was smoke and mirrors. How do we know that? Simple. The federal debt continued to grow. When you have "deficits" your debt grows (It seems stupid to have to say that, but in today's realm of educated fools, one has to). And one thing is absolutely, unequivocably true about Keynesian economists. They produce deficits. Huge, economy destroying deficits. This is unarguable. There are only deficits. And, no matter how large the deficit is, the answer is "spend more." When you strip away the surface prattle, this is simply statism, the belief that a central ruling body does things better than the ignorant masses.
The alternative to this mess is called "Austrian Economics" which is essentially libertarianism, or individual freedom, applied to economics. It says people SHOULD BE LEFT ALONE. We don't need "experts" to direct, guide, shepherd, manage, or control things. Millions of choices of free people, directing their own lives produce collectively an economy and monetary policy and society that is better in every way.
The purpose of this note is not to ARGUE for freedom when applied to econ. Lew Rockwell does this far better than I. Go there and educate yourself.
The purpose of this note is to get it out there in front. The choice is between freedom and slavery to an elite, between individual sovereignty or a ruling class, and between production of your own wealth and determination of your money supply or licking the boots of your masters as they decide when you have "enough."
I fear we are too far down the second road for this current realm to recover. The only question is, when we begin, over then next 10 years or so, to pick up the pieces, will we have enough people who believe in liberty and freedom to insist they be the governing principles of our society?
It is the big question of 2011...................