Hard core Keynesians may be vocally supportive of free market principles, but their blind adherence to analytical biases that artificially embellish the effectiveness of severely skewed demand side economic policies have run cover for the disastrous socialist policies of the political left. Ms. Yellen’s blatant misdiagnosis of the impact of the inflationary trillion dollar demand side spending by the Biden Administration is a prime example of what happens when big government socialist style spending is backed up by hard core Keynesian wizardry. Now that it has become obvious that inflation is not transitory the hard core Keynesian, Yellen, is actually endorsing price controls for oil and gas. Such policies are in direct opposition to free market principles and have always been a dismal failure (revisit the 1970’s and the Carter price control boondoggle). In the case of the ongoing Biden boondoggle, his demand side excesses, when supply was already severely lagging demand, was endorsed by hard core Keynesians. See the article ‘A Keynesian Thumb On The Scale’ posted in www.georgeeconomics.com for another view of hard core Keynesian wizardry. In true myopic green energy hard core Keynesian style, emergency supply side fiscal stimuli across all industries (or at least the lifting of restrictions on oil and gas exploration and production) to help correct demand and supply imbalances are totally ignored and the task of handling inflation is dumped on the Fed which is already seriously late to the party. If Milton Friedman were still alive, his anger at the gross stupidity of the Democrat party and the hard core Keynesians who endorsed Biden’s policies would likely have led to cardiac arrest or at the very least to a blistering public denunciation. He would have probably ended his tirade with the conclusion that once again big government and agenda driven politicians have gotten in the way of the free market and created the totally unnecessary problematic economic issues we are now having to resolve.
