Man understood that elementary fact of nature from the beginning of time until the dawn of Keynesian economic theory, when experts declared that consumption was actually the “engine” that “drives the economy.” Thus, many economists and politicians tell us that what we need to restore full employment and high economic growth is more “aggregate demand” which the federal government can create by more and more deficit spending.
The entrepreneur-author of this Forbes piece explains why the Keynesians are mistaken.
If Keynesian thinking were true, poverty around the world could easily be eliminated just by printing up lots of money and giving it to people to spend.
