Obama pushes Keynesian policies while economy spirals

A free market economist and university professor says President Obama, his advisors, and his Democratic supporters in Washington are being heavily influenced by the failed ideas of late British economist John Maynard Keynes, who advocated government spending as a stimulus for economic activity.



Grove City College economics professor Dr. Mark Hendrickson says Washington is being haunted by "the ghost of John Maynard Keynes." He notes that although President Franklin Roosevelt tried to "out-Hoover" his predecessor Herbert Hoover by running large deficits and increasing federal spending in hopes of curing the country's economic woes, the Great Depression persisted.

Dr. Hendrickson points out that after famous economist John Maynard Keynes prescribed deficit spending in 1935 as the correct anti-depression policy, FDR continued running high deficits for another five or six years, and the economy still did not recover. He believes Congress as well as the Bush and Obama administrations failed to learn that the Keynesian policies of Hoover and Roosevelt during the Depression "squandered wealth and delayed economic recovery."


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