"The more realistic we make the framework of analysis, the more dubious the Keynesian solutions appear. The classical wisdom on savings survives Keynes’s assault; there is nothing paradoxical about thrift." #QotD

"The more realistic we make the framework of analysis, the more dubious the Keynesian solutions appear. The classical wisdom survives [Keynes]’s assault; there is nothing paradoxical about thrift. After a speculative boom, during which people consumed beyond their means, the correct response is for all to live below their means in order to replenish their savings. In such a scenario, government efforts to prevent savings—by engaging in its own counterbalancing borrowing—simply hamper recovery." 

          ~ Robert Murphy, from his post 'Nothing Paradoxical About Thrift'

RELATED:

• "Nothing has changed, other than the belief among economists that public sector spending will create jobs. It won’t, just as it never has, just as it will not create jobs in the future when the next economic crisis eventually occurs, as it inevitably must."
  The Dangerous Persistence of Keynesian Economics - Steven Kates, QUADRANT MAGAZINE
• "My goal is to make you mad at the evil being wrought in the name of fighting inflation and maximising employment."
  How Keynes Put a Ticking Time Bomb Under Capitalism - Keith Weiner, SAVVY STREET

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