Video: Why Keynesian Economics Is Wrong

Here is an instructive video, from Center For Freedom and Prosperity, on why Keynesian economics is flawed... (Thanks to Professor Dan Mitchell)

The video mainly focuses on the misleading segments of the widely used statistical construct from which most policies have been premised.

The essence here is that the major flaw in the theory is the focus on aggregate demand, as reflected on consumption spending, as the principal driver of economic growth.

There are other flaws in Keynesian economics not included in the video:

-fixation on "full employment"

-"countercyclical policies" via deficit spending or inflationism

-"animal spirits"

-money is "neutral"

Understanding the flaws is important because the gist of mainstream politics have been shaped from the assumption of the validity of these models. Thus, knowledge thereof represents as emancipation from the delusion of the messianic virtues or the infallibility of government. At the end of the day the law of scarcity prevails.