I quit reading right there.
This Keynesian nonsense is the old democrat coming out in Hanson.
You are absolutely right! It won't faze the Hanson worshipers here, however. They see him as a sage philosopher and historian who can do no wrong. Interestingly, Hanson barely uttered a whimper of protest against Bush's big government policies including the bailouts. It seems that he only trots out the free market purple prose when Democrats are in office. His first and foremost concern is spreading Wilsonian Democracy around the world, not fighting big government at home.