I learned something new today
Today on the Dave Ramsey show he talked about the fact that most of the philosophies behind FDR’s New Deal were based on the writings and teachings of a man by the name of John Maynard Keynes, the father of “Keynesian Economics”. Keynes was a self professed socialist (not surprising that the New Deal was influenced by a socialist). Today, most of what is taught in government schools regarding economics (as little as that is) and the New Deal are based on and favorable to Keynesian Economics. Today, we are again seeing Keynesian Economics put into place by the Obama administration.
All of this is significant because the founding fathers for this great nation based their economic polices on the writings of Adam Smith, and particularly the book “The Wealth of Nations”. Smith laid out the methodology and philosophy behind the capitalist and free trade systems of economics. The free trade system has worked very well for a very long time, however the policies of the Obama administration will likely destroy much of what the New Deal left intact 80 years ago.
Rather than teaching students the interventionist theories of Keynes, (which don’t work, the New Deal only made the depression longer, and Obama’s policies will do the same with the current situation) our schools should be teaching the free enterprise theories of Smith. Our country offers everyone a guaranteed opportunity to experience success in life, but too many people try to use Keynesian policies to guarantee result of success. The current Keynesian policies are lending to the prevention of failure for businesses that are not built to succeed. If you take away the pain of failure, you take away at least part of the desire to succeed. Imagine if the government had stepped in and tried to keep Edison from failing at creating the light bulb (one of the thousands of times that he did fail), we might all still be sitting in the dark.