I have expressed my feelings about how our country is suffering from a failure in economics many times. We have a monopoly in Keynesian economists being taught in America. The result of this is that every economist in Washington is a Keynesian economist. Keynesian economists allow politicians to spend a lot of money.
This is the way it should work: During a high-growth period the government should put aside some money to be spent to stimulate the economy in the low-growth period. What really happens is that no money is put aside, but when a low-growth period occurs the government borrows money to spend on a stimulus package. The problem is, it never works.
Austrian School economists believe in balancing the budget, so no money is ever borrowed. They follow Ludwig von Mises, who mentions in his book, “ Economic Freedom and Interventionism,” that you can’t have a stimulus package paid for by debt. This statement is more direct than Keynes’ statement above. When our government tries a stimulus package what they are trying to do is have a short-time growth spurt (gain), at the expense of a long-term liability (pain). I disagree with our government doing this, because this is similar to kicking the can down the road, causing the next generation to pay for the package.
It’s a shame that Americans can’t vote on our economic policy, as it is so important. In fact this policy is going to destroy America, and our divided government is going to be finger pointing. No one will take any blame for this lousy policy.