The Japanese experience of losing a decade or two with massive deficits
failing to boost demand now has been repeated across the developed world,
including here in the US. Given these uniformly poor results, isn't it time to
reevaluate Keynsian Economics? Keynes' theories were always counter intuitive
to me anyway. How could taking resources out of a relatively efficient private
sector and moving them to a relatively inefficient public sector make everybody
better off? Now that we have done the experiment over and over with disastrous
results, it's time to take notice that Reagan's Supply Side Economics seemed to
work a lot better than anything we've tried lately. If government deficit
spending was the key to prosperity, Greece would be a world leading economy. It
appears instead that government deficits are the road to ruin and we should
change our ways. This means we should throw Keynes' Theories into the
historical interest section and remove them from the practical guide for policy
role.