In a previous post, I described how nonplussed I was with the economic defense of Keynesian policy by its marquee mouthpiece. But there is a more pressing reason to oppose giving control of spending over to the State, and it is spelled W-A-R. Keynesian policy, which states that it really doesn’t matter what the government spends money on, as long as it provides unemployment and kicks off the magical multiplier effect, provides an intellectual defense of what the government likes to spend it on the most, which is war and the preparation for war. It’s clear that the anti-capitalist and anti-state Left (I know you’re out there) should oppose this particular branch of capitalist economics most of all. Yes, I know you don’t care for Mises and other reactionary booze-wah pigs, but at least Mises and Rothbard stood against war and empire, the former writing:
Whereas Keynes’ boy Krugman has even found some economic good in the 9/11 attacks. And now, right on cue we have a Keynesian in the Wall Street Journal pimping for the DOD, (a glib photo caption reads: “we could use some more F-22’s”- yeah, like a freakin’ hole in the head!) prompting Mises and Rothbard’s heir Robert Higgs to write:
Feldstein’s article reminds us that the elites who rule this country have a high threshold for embarrassment. They will shamelessly trot out any sorry intellectual apparatus to justify snatching the taxpayers’ money and funneling it to privileged corporate contractors and to the horde of drones on the government’s payroll. However intellectually contemptible military Keynesianism may be, though, it has a proven record of getting the Establishment where it wants to go.
Now you can see why Rothbard called it the “Welfare/Warfare” State. Liberals are attracted to the former, conservatives the latter, each side thinking they can have one without the other, but as long as we let the State control our economic life they will be eternally wedded.
On the other hand, there is a small but vocal anti-war conservative contingent. John Zmirak says “Cut the Pentagon ‘Till its a Triangle”, writing:
Perhaps the only positive outcome our country could squeeze from this year’s grapes of wrath is this: We are too poor to pay for our empire. Faced with years of a shrinking economy, debts we can’t even imagine paying down, demands that the government cannot meet, and a populace incapable of self-sacrifice or even postponing gratification, there is only one place where the government can look to impose the kind of painless budget cuts that Americans will endure: Our massive, metastasized military. Of all the things on which the government wastes our money, this one is the most obvious.
But the choice between being rich warmongers and a poor nation that turns the other cheek is a false one.
Folks, if your common sense tells you that war, plagues, and earthquakes are bad for human prosperity, trust that sense and don’t let anybody tell you otherwise, even if they have a Nobel prize and assure you they have the “conscience of a liberal”.
And oh yeah, not to get all ad hominem or anything, but personally John Maynard Keynes was a fascist sympathizer and anti-Semite.