Criticism of Keynesian economics

University of Chicago Professor Luigi Zingales summed up the Keynesian approach this way:

“Keynesianism has conquered the hearts and minds of politicians and ordinary people alike because it provides a justification for irresponsible behaviour.

“Medical science has established that one or two glasses of wine per day are good for your long-term health, but no doctor would prescribe this to an alcoholic. Unfortunately, Keynesian economists do exactly that. They tell politicians, who are addicted to spending our money, that government expenditure is good. And they tell consumers, who are affected by severe spending problems, that consuming is good, while saving is bad.

“In medicine, such behaviour would get you expelled from the medical profession. In economics it gets you a job in government.”

Quote source

Day, B. (2014). Bob Day: Politicians and Bureaucrats Are the Last People You Want Deciding Where Best to Spend Your Money. The Advertiser. Available http://www.adelaidenow.com.au/news/opinion/bob-day-politicians-and-bureaucrats-are-the-last-people-you-want-deciding-where-best-to-spend-your-money/story-fni6unxq-1227040471710?nk=b653a9817eb35ff31d3f33410edaf198. Last accessed 7th Feb 2015.

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