IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/16893_7.html
   My bibliography  Save this book chapter

The dangers of Keynesian economics

In: What’s Wrong with Keynesian Economic Theory?

Author

Listed:
  • Steven Kates

Abstract

In sharp contrast to the private sector, where firms will go out of business if revenues do not cover costs, most government spending is not value-adding. That is not of itself an argument against public spending,but it is an argument against thinking that when governments spend they are necessarily helping the economy grow. The belief that public spending is good for growth is the largest fallacy associated with modern macroeconomic theory. Being unable to tell the difference between welfare and wealth creation is possibly Keynes’s most lasting legacy, a legacy which has been poisoning public policy since the 1930s.

Suggested Citation

  • Steven Kates, 2016. "The dangers of Keynesian economics," Chapters, in: Steven Kates (ed.), What’s Wrong with Keynesian Economic Theory?, chapter 7, pages 123-149, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:16893_7
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/edcoll/9781785363733/9781785363733.00013.xml
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Economics and Finance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:eechap:16893_7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.