Wherever we look, the economics profession in government service appears to have been hijacked by interventionist Keynesian economists. Politics is part of this but it is by no means the whole. Some so-called economists are left-wing ideologues. Most, however, are simply victims of someone described colourfully by Thomas Woods in Meltdown as “one of the twentieth century’s crackpots”: John Maynard Keynes.
Crackpot or not, Keynes has spawned generations of economists and politicians who think that spending money is the same thing as making money. You might recall Michael Douglas’s character in War of the Roses saying to his wife (played by Kathleen Turner): “It’s a lot easier to spend it than it is to make it, honeybun!” Well, not according Keynesian economists, it isn’t.
Keynesian economists believe in the spurious and curious notion that economies are driven by spending rather than by making. To them spending is an economy’s driving force.