The Problem with Keynesian Economics

It is... unrealistic to expect private industry to
completely account for economic growth without at least
some supporting policies from the public sector. These
are most efficiently done through a central bank and
finance policy, but a major component of non-supply-side
economics is the creation of artificial demand through
government intervention or spending. Public works.
That sort of thing. The argument against generating
artificial demand is that the natural market cannot
compensate naturally for the sudden spikes, and recursively
the inability to take advantage of a spike in demand,
because it was not predicted by regular models and their
implicational policies will lead, eventually.. .and logically..
to a deficit (which ostensibly the government will guarantee).
In the end, the government owes more than it spends, because
the market is tuned to natural motion. I advocate very limited
intrusions, and as Huffington said, what we are practicing
today is in every sense socialist democracy. We had no choice,
so the option is clear: As she said, if the entity is too big
to fail, then it is too big to exist. I think the US is going
to be in for a long period of economic uncertainty, because
of the lack of a principled application of the laws of economics
by this administration, following the unprecedented intervention
43 was forced to make after Lehman. MTC