Tuesday, November 30, 2010

Why Keynesian Economics Is Wrong

This 5 minute video produced by the Center for Freedon and Prosperity of the American Enterprise institute explains why the Keynesians are wrong. Economic growth causes consumer spending, not the other way round. This is why no amount of Keynesian "stimulus" will cure what ails our economy. Improving the lot of consumers by way of policies that increase their disposable income, such as lower tax rates, are the right prescription.

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