by MN Gordon, Acting Man:
There was, indeed, a time when clear thinking and lucid communication via the written word were held in high regard. As far as we can tell, this wonderful epoch concluded in 1936. Everything since has been tortured with varying degrees of gobbledygook.
One should probably not be overly surprised that the abominable statist rag Time Magazine is fulsomely praising Keynes’ nigh unreadable tome. We too suspect that this book has actually lowered the planet-wide IQ – in fact, similar to Marx’ Das Kapital, it has done permanent damage. We have to admit that we have read it ourselves (and what a slog it was!) – contrary to Keynes himself, who once published a scathing critique of Mises’ Theory of Money and Credit without reading even one word of it, we prefer to actually read what those we criticize have published. In the first German edition of the book, Keynes freely admitted that his policy recommendations were probably more useful for a totalitarian State than a free society (i.e., it would be easier to implement them, because of their coercive nature). The biggest problem is though that most of the book is a rehash of hoary inflationist ideas that were already long refuted by the time of its publication.
The handful of original ideas Keynes contributed didn’t constitute good economic theory either. Moreover, the book is riddled with contradictions and is an extremely tedious read to boot. At best we can recommend it as symptomatic treatment for insomnia. However, it did provide the State with a pseudo-scientific fig leaf for central planning and interventionism, which in turn provides thousands of mediocre economists with an income. This is the reason why it was and continues to be praised to the rafters by assorted etatistes. It is at this point that we are often reminded by people (who usually haven’t read it) that “not all the ideas in the book are bad”. Well, you don’t have to take our word for it. If you don’t want to go through the painful effort of reading it, you might want to look at Henry Hazlitt’s detailed critique instead, which is available for free here: The Failure of the “New” Economics (pdf). It is the only way to have fun reading Keynes’ book. Hazlitt is taking it apart mercilessly with impeccable logic. In addition, he provides the reader with a few enlightening excursions, such as e.g. a disquisition on mathematical economics that is one of the best take-downs of this barren, physics envy-driven, pseudo-intellectual wanking we have ever seen.
The fall from grace was triggered by the 1936 publication of John Maynard Keynes’ The General Theory of Employment, Interest and Money. The book is rigorously indecipherable. What’s more, it has the ill-effect of making those who read it dumber [ed note: not all of them we hope! If you possess the required intellectual armor, you may emerge baffled, but still sane and without IQ losses. PT].
Nonetheless, politicians and establishment economists remain enamored with Keynes’ gibberish. For it offers an academic rationale for governments to do what they love to do most – borrow money and spend it on inane programs.
In particular, Keynes inter alia advocated filling bottles with money and burying them in coalmines for people to dig up as a way to end unemployment. Somehow, this public works egg hunt would make everyone rich.
Over the years, this reasoning has inspired countless government stunts to save the economy from itself. Not long ago, Keynes devotee Paul Krugman took this logic and ran with it to the outer limits of deep space. In the process, he seems to have lost what was left of his mind.
According to Krugman, the proper way to propel an economic growth chart up and to the right is to borrow massive amounts of money and spend it preparing for an alien invasion. Naturally, it takes a Nobel Prize winning economist to come up with such nonsense.
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