Jason North

Every Keynesian stimulus package in history has failed to deliver sustained economic growth, instead creating asset bubbles, debt crises, and malinvestment. From FDR's New Deal that extended the Great Depression through the 1930s to Japan's lost decades of endless stimulus spending, the track record is crystal clear. The 2008 financial crisis response perfectly illustrates this failure. Trillions in stimulus and quantitative easing didn't restore productive employment or real wages—they inflated stock markets and real estate while leaving Main Street behind. The "recovery" was entirely artificial, built on cheap money rather than genuine productivity gains. Even more damaging is how Keynesian policies systematically transfer wealth from savers and productive workers to financial elites and government cronies. When you print money to fund spending, you're not creating prosperity—you're redistributing purchasing power from those who earned it to those with first access to newly created money. The Austrian economists predicted these failures decades ago because they understood that real prosperity comes from savings, investment, and market-driven resource allocation, not government spending financed by money printing. Until we abandon the Keynesian delusion, we'll keep repeating the same boom-bust cycles that impoverish the middle class.