Material Evidence: The Crazy Parallel World of the Keynesians

Sean Corrigan reports on the crazy parallel world of Keynesian economics.

The imposition of negative interest rates is one way to totally devastate the poor, pensioners, and all people on fixed income. A Keynesian sees this as the lesser of two evils – getting out of the deflation in Japan. Thrifty people who have provided for themselves and for their future should be punished: this is the world of Keynes.

Sean also takes a swipe at GDP accounting and how 70% of the economy is actually lost to these statisticians. My take on this that to we Austrian economists, A=A, while to the mainstream Neoclassicals — the whole army of other economists — A=B, i.e. a thing is not a thing in itself. Nutty as it sounds, this is the state of economics. For a non-Austrian, if you go home and eat a nice piece of fried fish and chips, you have not consumed a fish and chip meal, but in fact only the difference between raw fish and potatoes and cooked fish and chips. This is the crazy world of mainstream macroeconomics: none of the intermediate stages of production count in GDP stats!

Material Evidence 2010-04-09

Download the report here.