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by Scott Ledd Scuttledd <img src="http://s7.addthis.com/static/btn/lg-share-en.gif" width="125" height="16" border="0" alt="" /> An Interview with the “Rosa Parks of Monetary Liberty,” Bernard von NotHaus I'd like to invite you, Dear Reader, to participate in a brief thought experiment with me.
A University of Chicago professor argues that help for the poor might be worsening unemployment Reuters By now, we've all gotten used to the fights on Capitol Hill about extending unemployment benefits. Each time they're about to expire, Democrats line up to renew them. Meanwhile, at least a few Republicans rise up to object. Their argument: By writing checks to the jobless, we're making it less likely that they'll go out and find work.
The eclipse of Keynesian economics proceeds. When Keynes wrote “The General Theory of Employment, Interest and Money” in the mid-1930s, governments in most wealthy nations were relatively small and their debts modest. Deficit spending and pump priming were plausible responses to economic slumps. Now, huge governments are often saddled with massive debts. Standard Keynesian remedies for downturns — spend more and tax less — presume the willingness of bond markets to finance the resulting deficits at reasonable interest rates. If markets refuse, Keynesian policies won’t work.