patrick.net

Monetarists are the true destroyers of the American Dream. Hearing all this back and forth between Keynesians and Austrians reminds me of Republican vs. Democrat and the way both sides are corporately owned. We who are interested in economics seem to be falling into the same trap, fighting each other while leaving the true enemy to continue its damage.

Furthermore, both sides get pulverized by monetarism. Austrians get lip service, only to see any savings that could be gained by cutting social welfare being handed out in corporate welfare and bailouts. Then they're called heartless. Keynesians end up scapegoated as money-printing continues, but aggregate demand fails to appear because the new money never makes it to the productive economy where it could do some good. Instead we get asset inflation and Keynesianism gets the blame for the printing. Neither side gets what it wants but wastes energy fighting one another.

Monetarism, or voodoo economics as George Bush Sr. called it, works just like it was intended, keeping everyone down and attacking each other. We all need to repute it, Keynesians and Austrians alike and work together to stop it. Then we can figure out which true economic philosophy works better.

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