The first example in modern history of a science actually going backwards

It is now regularly stated that we have to take the larger denomination bills out of circulation to combat crime. Makes no sense, but on the other hand, this seems very plausible. From Steve Hayward: KOMPULSORY KEYNESIANISM?.

What’s the idea behind negative interest rates? A hidden subsidy for mattress manufacturers perhaps? Nope: given that the various monetary and fiscal stimuli haven’t generated much growth either here or in Europe, negative interest rates are intended to enlist everyone as involuntary Keynesians—spend your money or we’ll take it from you. So who wants to keep their money in a bank—even a Swiss bank. Another example of a liberal idea so good it has to be made mandatory.

That is to say, the smaller is the largest note, the more difficult it is to merely hold money so everyone is forced to spend. Nothing has worked so the efforts to get people to spend will be re-doubled. This is that same crackpot Keynesian theory as ever, that economies are made to grow by increase in spending. This comment that followed the article captures the central economic idiocy of our time:

Monetary and fiscal “stimuli” are the same old economic frauds perpetrated over and over again. They’ve never worked in the past, and there is no chance they will work in the future. The only thing they have going for them is that they’re excuses for more government spending and government control of the economy.

The amounts of fiscal and monetary “stimulus” applied during the Obama years have exceeded all past efforts, with the result that we’ve had the worst “recovery” since the 1930s with no end in sight. As always, the Keynesian economists’ excuse is that we just haven’t taken enough of their poison.

Economic science is the first example in modern history of a science which is actually going backwards. Classical economists knew more about how to stimulate an economy 100 years ago than Keynesian economists know today.

Indeed it is so but how are you to find out?

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