Daniel J. Mitchell asks why Keynesian fallacies won’t die.
Keynesian economics is a failure. It didn’t work for Hoover and Roosevelt in the 1930s. It didn’t work for Japan in the 1990s. And it didn’t work for Bush or Obama in recent years. No matter where’s it’s been tried, it’s been a flop. So why, whenever there’s a downturn, do politicians resuscitate the idea that bigger government will “stimulate” the economy?
The answer, alas, is simple: politicians know that they benefit from any theory which calls for more spending as a fix to every problem.