The following is an excellent Center For Freedom & Prosperity video hosted by Dan Mitchell of the Cato Institute. Mitchell lucidly explains the theoretical and practical failures of the Keynesian economic model and helpfully delineates some of its greatest negative consequences in the American context, with special reference to the Great Depression and the results of the Hoover and Roosevelt administrations' commitment to statism.
As Mitchell says at the end of the video, your guess is as good as mine as to why Keynesian economics has remained so popular. What's worse, it's no longer merely the crusading socialists who embrace its assumptions and methods. Witness the massive growth in government size in recent years in the United States under an allegedly conservative administration.
Perhaps by continuing to expose the fallacies of Keynesian economics we will succeed in weaning North Americans off their diet of statism and help them develop an appetite for freedom.
H/t TSC
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