Professor William Anderson does a very good job of explaining the fundamental mistakes in Keynesian theory in this article.
His immediate target is Paul Krugman, who keeps writing that the economy needs more government spending or else we’ll fall into a deep depression. Anderson points out that Krugman (and Keynes) believe that it’s possible to create prosperity just by having the government borrow or print lots of money. Sorry, but that’s the economic version of the perpetual energy machine.
