Keynesian economics is a fraud. It has neither theoretical coherence nor empirical support. It was adopted out of desperation in the 1930s.
Many contemporary economists of the time protested that the fundamentals of the theory were incorrect. Economists had rejected some of its premises more than a century before John Maynard Keynes was born. For a sampling of some of the reactions, see The Critics of Keynesian Economics.
"Proof" is a difficult hurdle. It is in this context that the paradigm shift to Keynesian economics should be viewed. Politicians wanting to expand the role of government delighted in the new theory. This attractiveness, plus the desperation associated with the Great Depression, enabled hundreds of years of prior economic knowledge to be discarded without normal due diligence. Economists were also beneficiaries. Economists gained higher income and prestige as well as more power. Government-funded research ensured the continued academic support for economic activism.
For more: Articles: The Keynesian Fraud
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