The Keynesian Myth: Why Spending Won’t Save the Economy

John Maynard Keynes built his economic framework on a dangerous myth: that an economy suffers from prolonged unemployment due to insufficient spending. According to this view, when consumers and businesses cut back on expenditures, revenues dry up, inventories pile up, and unemployment skyrockets. Keynesians argue that because wages are "sticky"—meaning workers resist pay cuts—this creates a downward spiral where falling incomes lead to even less spending, deepening the recession. Their solution? Government intervention, through deficit spending and money-printing, to artificially prop up demand. It sounds tidy in theory, but in reality, this approach has been a recipe for disaster. The Keynesian prescription has given us runaway debt, asset bubbles, and chronic economic distortions. It prioritizes consumption over production, paper money…