Ron Ross at The American Spectator brings us this short summary of the problems inherent in the Keynesian view of economics. One of the most important of these is that like all statist models, it does not have an accurate way of looking at human behavior.
Economics is, after all, a way of looking at the activities of people. We trade in order to get things that we need and want. And we make judgments about what we think is going to happen in the future for good or for ill. These judgments have an impact on our present actions as well as our long term plans. And when enough people change their plans because they have no confidence in the current government to make sensible policy, it has a profound effect on the economy as a whole.
