Monetarism Didn’t Discredit the Phillips Curve, Rather It Mirrors It

Government has no resources. It can only spend what it’s taken from us first.

Yet Keynesian economists (meaning the vast majority of economists) believe government spending boosts economic growth. Economists point to the consumption that government enables, and voila, growth!

Except for one problem. To enable consumption through wealth redistribution, government must shrink consumption elsewhere. Behind all consumption is production, and governments produce nothing.

More laughably, economists not only believe government spending enhances consumption, they also believe that if government spends too much, that the spending causes inflation.

Read the rest of the article at Forbes.


  • John Tamny

    John Tamny is a popular speaker and author in the U.S. and around the world. His speech topics include "Government Barriers to Economic Growth," "Why Washington and Wall Street are Better Off Living Apart," and more.

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