It occurred to me today that Keynesian economics is nothing more than the “broken windows fallacy” extrapolated to the entire economy.
http://en.wikipedia.org/wiki/Parable_of_the_broken_window
My interpretation of this is that breaking a window is a net decrease to the system as a whole and is a net cost to the system.
Everything comes down to input and output of a system, that is why Keynesian Economics don’t work.
If they go back to basic system theory, they are making up false inputs into the system. Any balanced system when burdened with too much artificial input or output becomes unstable.
And that is if it was a physical system, just imagine once you through in human beings.
I read Keynesian as Kenyan.
(either is correct)