I've dealt often enough on this blog with the deflation myth, mainly because that piece of blatant propaganda is getting repeated often enough in the mainstream media to merit repeated refutations. But another big fat lie I'd like to address is the so called "paradox of thrift". This is another Keynesian theory that, roughly speaking, states that it is bad for the economy if everybody simultaneously cuts back their spending and starts to save...which in an economic downturn is what tends to happen.
When times are bad, the last thing anybody should be doing is splashing out on big purchases, so a policy of save more, spend less, makes perfect sense. However, along comes Keynes and manages to cook up a load of bollocks theory that says this is bad for the economy. OK, fair enough, he can talk shite if he likes. Unfortunately, that is not where it ends - the government and the mainstream media act as if this theory is the gospel truth.
There are many examples, but check out this beauty that appeared in The Times recently. To quote the author,
"As John Maynard Keynes pointed out, excessive saving at a time of recession can do more harm than good, a phenomenon he called the paradox of thrift."
Note the phrase "As John Maynard Keynes pointed out". That's right folks, we're not dealing with a theory here. Keynes simply "pointed out" something, i. e. the paradox of thrift is not a theory it is a self evident fact! Well, it isn't. There are numerous demolitions on Mises.org, check out one here.
Why do the elites love the Paradox of Thrift so much? Because they are devastated at the possibility that a large number of people might escape from debt. People not in debt might even start to build up their own independent source of wealth. And that means they could even tell their employer to stick their shit job. That just won't do. The proles must continue to live in fear at the prospect of losing their jobs and the best way to achieve that is to promote debt as the solution to our problems and ensure as few people as possible own their own home outright.
Which is exactly the situation with have right now. Funny that, no?
Wishing you all the Very Best for the New Year 2010 (everyone except of course the governing elites, may I strongly suggest that you simply GET FUCKED, always)