5th Grade Arguments against Keynes

From the Civil Society Trust Blog comes a 5th grade explanation of the problems with Keynes (Do I have my doubts this is really a 5th grader?  Yes.  But that’s still about all the understanding it takes to discredit many of Keynes’ dangerously wrong ideas):

“I was working on my decimal and percentage multiplication for homework”, the student said, “and I could hear my dad complaining about how his paycheck was smaller because of all the taxes they take out.  He said his check was about 75% of what he earned.   I asked him where the other 25% went and he said to the government, but that the government was spending a bunch of that money to stimulate the economy.”

“So I thought some more about that, and it occurred to me that they can’t simply take whatever they tax from my dad and spend it somewhere else, because some other moms and dads working for the government have to get paid, too.    Of my dad’s taxes, I bet they can probably only spend maybe half of that on stuff they think will grow the economy.   I know they can actually spend all of it, but then to pay for the government workers and the things they do, they have to get even more money, which is probably what all the borrowing and debt is for that I’ve seen in the papers.”

Read the rest here.

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