The great battle since 2008 has pitted the ghosts of F.A. Hayek against John Maynard Keynes.
Team Keynes dictated the policies we know too well: more government spending, flood the economy with money, prevent liquidation. This team predicted a recovery that still hasn’t come.
Meanwhile, Team Hayek has had a different set of predictions. This would not boost recovery. It will forestall it, even make everything worse. We’ll pay an even higher price later on.
As the failure of Team Keynes has become clearer, the battle has become brutal, a real war of words, some of which have been flung at our very own Robert Murphy, who serves on the Advisory Board of the Laissez Faire Club.
Naturally, we’re coming to his defense.
Hayek and Keynes — the great opponents in the struggle over how government should manage recessions — were social acquaintances. They disagreed profoundly on nearly everything. Still, they had respect for each other’s professional accomplishments.
Read More at dailyreckoning.com . By Jeffrey Tucker.