Article Review

The article was a big jump from the simplicity of the first four chapters we've read from the book but after a few days of thinking it over and rereading and researching, I've found that the general gist of the article was as follows, Keynesian economics is a failure. They have led to nothing positive in the long-run and are only stalling an inevitable crash of a bubble they have created themselves. Essentially, wall street has been taking free money from the government for the past 80 months. This has lead to a creation of a bubble around wall street, which like the internet bubble and the housing bubble, will eventually crash. Large corporations have also been loaned money from the government at a very low interest rate and this money was supposed to be loaned out to the general public in hopes of helping to alleviate some of the financial struggles they may face and and in turn promoting spending overall. However these corporations have actually been keeping the money by charging really high interest rates themselves. The author argues that these economies are nothing but bad news and it is the low interest rates that are causing most of the issues and the buildup that will lead to a crash. The author is also very against government interference in most cases. He believes that the government hasn't positively affected wall street and that most policies and actions, like inflation by printing more money, have only perpetuated the bubble once more.