Writes Lew Rockwell in today’s Mises Daily:
Fast forward to the Panic of 2008, and Keynesianism was suddenly back. The economics profession had been blindsided by the financial crisis, and lacking any answers or solutions, fell back on the crudest forms of Keynesian “stimulus.”
The return of Keynesianism is one area in which conditions have worsened since Mises’s death, when it seemed Keynes had been defeated. But there is ample reason for hope. The word “Keynesian” is now used as a term of abuse by a great many informed people, and the rising generation of young scholars are looking with skepticism at the Keynesianism of their professors.
Moreover, Keynesianism is visibly failing. The unprecedented fiscal and monetary expansion that has taken place around the world should have been followed by rapid and robust recovery. It wasn’t. Unemployment remains high across the Western world. If the Keynesians are right, this should not be happening.