Russ Roberts at Cafe Hayek comments on the failure of the Keynesian stimulus to stimulate the economy here.
One reason Keynesian stimulus is so ineffective is the aggregation
problem. Boosting ?aggregate demand? hides the complexity of the
economy and the fact that parts of the economy are fine and parts are
sick. …….In this map, the metropolitan areas with high unemployment are in red.
Average or low are in yellow. I am not surprised to see the red areas
are in California, Florida, Nevada, Arizona, and Michigan, the places
that had the biggest housing booms and the biggest housing busts. Could
be a coincidence, of course. And it does play to my confirmation bias.
I am open to other interpretations. Please share them.
