Keynesianism is Fabian Socialism
The Disaster of Keynesian Economics
Keynes knew where his ideas would lead, in fact, wanted it to lead.
The necessity of inflation in Keynesism is missed by many. In theory, loans made in bad times are repaid in good times, but Keynes was plenty shrewd enough to realize that the impulse of politicians to pander to the electorate would prove insurmountable, and on-going inflation to pay the debt unavoidable. This is, in fact, what has happened.
What Keynesian apologists never talk about is that the goal was not economic equilibrium in a condition of freedom, but an economic equilibrium that was in effect under the complete control of the government:
The State will have to exercise a guiding influence on the propensity to consume, partly through its scheme of taxation, partly by fixing the rate of interest, and partly, perhaps, in other ways [such as?]. Furthermore, it seems unlikely that the influence of banking policy on the rate of interest will be sufficient by itself to determine an optimum rate of investment. I conceive, therefore, that a somewhat comprehensive socialization of investment will prove the only means of securing an approximation to full employment. . .What is he saying here? That if the State controls how companies get money, how much profit they make, and how much their employees earn, then it doesn’t have to actually OWN them. Further, that his system enables a gradual transition in that direction, without setting off any alarm bells.
It is not the ownership of the instruments of production which it is important for the State to assume. If the State is able to determine the aggregate amount of resources devoted to augmenting the instruments and the basic rate of reward to those who own them, it will have accomplished all that is necessary. Moreover, the necessary measures of socialization can be introduced gradually and without a break in the general traditions of society. (General Theory, 378)
This is socialism, plain and simple, of the Fabian variety.
To be clear, for a true Liberal, the role of government is to protect us from one another. For Keynes, it is to foster full employment at the expense of economic and—inevitably—political freedom. The two go hand in hand.
Don't give me any of this crap that the Federal Reserve isn't the state. It's an appendage of the state as a hybrid institution and is not as independent as claimed. It is the nation's central bank.
Lol he refers to taxation as a "scheme."
“Experience should teach us to be most on our guard to protect liberty when the Government’s purposes are beneficent. Men born to freedom are naturally alert to repel invasion of their liberty by evil-minded rulers. The greatest dangers to liberty lurk in insidious encroachment by men of zeal, well-meaning but without understanding.” — James Madison
Last edited by BucEyedPea; 02-05-2012 at 01:05 PM..