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.

Video: Spontaneous Versus Planned Orders

This is an insightful video showing why and how spontaneous orders are superior and more efficient in allocating resources than a hierarchy. The secret: it's all about the maximizing the use of knowledge. --hat tip Greg Ransom

Video: Best Way To Maintain Fiscal Discipline Is To Cut Government Spending

How to balance the budget? Simple, cut government spending.

Dan Mitchell of the CATO institute explains how...

Do Roads Without Traffic Lights Translate To Chaos?

A small town in Britain took out traffic lights and got a pleasant surprise-a smoother flow of traffic!


As Professor Alex Tabarrok writes,

``The experiments are interesting in their own right but they are also very good illustrations of spontaneous order; how order is possible without orders."

Of course, for the mainstream, this is just another form of sacrilege.