Dear Friends,
It seems to me, the elite like to use Keynesian economics when in recession, but when in inflation, nothing could be further from their minds. We know this because governments the world over increase spending, when the economy is performing “sub par,” but never cut spending to lower prices. The idea is, if the economy is slow, it must be because aggregate demand is below aggregate supply, so the government can spend money to increase demand, to meet supply. In times of inflation however, instead of the government lowering that superfluous spending, central banks raise interest rates, driving aggregate demand out of the economy, to meet the insufficient supply. Like a pawl, ratcheting the economy out of the hands of the people, and into the clutches of the elite.
John Maynard Keynes was a British economist who had a prominent position in all the huge economic decisions of the Twentieth century. His economic theories revolve around aggregate supply and aggregate demand. In opposition to Say, who reckoned supply drives demand, Keynes claimed demand drives supply. Both grasping part of the problem but letting the rest slip away. Keynes reasoned that demand is demand… so in times of recession, the government can simply borrow and spend the economy back into prosperity. Even if it buries the money and allows the market to dig it up. Governments love this theory because it empowers them to spend money. Of course, even Keynes didn’t think government should perpetually borrow and spend, to fight regulation’s drag.
Money is power and no one knows this like the elite. The more money someone has control of the more power they wield. Since our elite today follow the Frankfurt school of thought, and that philosophy includes Nietzsche as a founding notion, the elite therefore embrace Nietzsche’s maxim to seek power not happiness. Keynes economic theory does just that, it gives them ever more power, because it authorizes the elite, in the name of economic prosperity, to spend our money for us. The elite don’t do anything as ridiculous, as bury the trillions they borrow and spend in our names though, of course not, they do much more productive things with it, like create covid in a lab. Every economic downturn then justifies more government borrowing and spending. A pernicious incentive if ever there was one.
Oddly, the idea doesn’t seem to occur to anyone, that Keynesian economics would work in reverse, to drive down inflation as well? I would think there would be economists who would realize this little reverse of the Keynesian equation? If government borrowing and spending can increase demand when demand is needed… wouldn’t a decrease in government spending and paying off government debt then, lower aggregate demand… with zero cost to the people? Well, rent seekers, parasites and sycophants would be harmed, but they are no endangered species. In fact our governments are covered with them. That plan however, lowering government spending to meet lowered supply, has one huge drawback that makes it unthinkable, it lessens the role, scope and power of the government and thus the elite.
We should petition our governments to meet this bout of inflation with reverse Keynesianism. Inflation that is entirely the fault of governments around the world, with their idiotic lock downs. The elite will cry like scalded cats, austerity! No word is as evil to an elitist as austerity, except maybe… populism. Moreover, since the people with the bull horns are the rent seekers, parasites and sycophants, they are the only people we hear from. Nevertheless, if governments used Keynesian economics in reverse to fight inflation, instead of forcing central banks to cut it from our flesh, all of mankind would benefit. The elite would lose ground though, so it is off the table, unless we force the issue. Contact your legislators, parliament, executive and media… demand inflation is fought with reverse Keynesianism.
Sincerely,
John Pepin
