Tuesday, July 21, 2009

Eon 101

American Thinker has a good snippet overview of Keynesian v Friedman macroeconomic theory.
The Great Depression is a case study in how government intervention into the free market is not successful and most often produces results opposite of what it intends. During the depression, 15 new government agencies were created, government spending increased by 220%, taxes increased by 68%, and the deficit increased to 24 billion dollars. Friedman postulated that the tremendous government intervention only perpetuated the depression -- a view that has been validated over time. He stated that, "far from the depression being a failure of the free-enterprise system, it was a tragic failure of the government."
But it has been fun watching the government repeat the mistakes of the New Deal...while I continue to be unemployed.

No comments: