Debunking Keynesian Economics

Below is a video I came across courtesy of Daniel Mitchel of the Cato Institute.  This is an excellent presentation of a basic misinterpretation of Gross National Product (GDP) that so many fall into.  In short, the argument demonstrates that focusing on GDP as a measure of economic growth via government expenditures is very much a bit of Keynesian smoke-and-mirrors. Rather than focusing on how national income is distributed (government expenditure), we should focus on how national income is earned as expressed in Gross National Income (GNI).  As the video states, the point is to grow the pie, not devise new ways of slicing it.  Enjoy and please pass this along to all you know.

I also highly recommend Mr. Mitchel’s article on the Cato Institute’s blog: Basic Economics for Financial Journalists and Other Dummies

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About Jeremiah Dow
I have a B.S. in Politics, Philosophy, and Economics with a minor in Economics. I finished school in 2010 and am currently working on independent research in various areas including political and economic philosophy, government, and history. I am also currently looking for work in research, particularly the social sciences dealing with public policy work. I aspire to a top-level graduate institution, but would first prefer some professional research experience. Some of my primary influences are Ayn Rand, Noam Chomsky, and Howard Zinn among others.

2 Responses to Debunking Keynesian Economics

  1. Pingback: The Death Knell of Keynesian Economics « The Foxhole

  2. Pingback: What is it About Economics…The Debt Deal Examined « kapitalcon

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