In the long run, Keynes will be dead…finally.

Keynesian economics has been refered to by some as  “Broken Window Economics”.  The theory being that if glazier’s are unemployed, the government will go into the business of breaking shop windows, thus creating demand.  The shop owner gets a new window, the glazier is provided with work, problem solved.

In the world of the near future, it will probably work more like this: 

A shop owner awakes to find his front window broken and a Federal Green Jobs employee standing out front with a handful of rocks.

“Did you break my window?” asks the shop owner.

“Your single pane shop window has been determined to be out of compliance with new Federal regulations regarding energy efficiency and safety standards” replies the Federal employee. “I mean look at those sharp shards of glass laying all over the sidewalk, somebody could get hurt.”  

“I see what you mean”, says the shop owner. “How ’bout I grab a broom and we can clean this mess up”.

“Against union rules”. I’ll get a hold of the Sanitation Dept. and have them take care of it. Please fill out these forms.”

“Forms? Tell you what, I’ll grab the broom and sweep it up myself.”

“You’ll need a permit for that”.

“A permit?! For what?!!

“A permit to remove and dispose of hazardous material from public property.”

“Public property?! That’s my window!! Or it was my window before you threw a rock through it!”

“Well, regardless, it’s on public property now so we’ll have to go through the proper channels to get this mess cleaned up. Please fill out these forms.”

Fine, fine…just give me the forms and I’ll fill them out while I order a new window.”

“So you intend to replace the broken widow.”

“What?”

“You intend to replace the window.”

“YES!! I intend to replace the broken window!  I can’t very well run a business with my former front widow laying in pieces in front of the shop, can I”.

“Very well. Here is a list of Federally acceptable window specifications and government approved contractors for installation.”

“Never mind! Give me the forms for “Hazardous waste” removal and I’ll install the window myself.”

” Are you a government approved green window replacement contractor?”

“Huh?”

“Do you have the proper certifications to install government approved, energy efficient, shatter proof, glass windows.”

“FUCK IT!!!  I’ll just put up a piece of plywood!

“You’ll need a building permit for that. Please fill out these forms with a description of the scope of work and detailed drawings of your proposed project .”

“Sigh”…..Why did you throw a rock through my window in the first place?”

“To provide green jobs and stimulate the economy.”

“Screw it. I’m closing this place, firing my employees, and going to work for someone else. Who is it you work for? Are they hiring?”

“I’m sure we are! Federally mandated green jobs are the jobs of the future! And the pay is great! Much better than running a shitty little business like…well, no offense, but you guys can’t even get a window replaced. Please fill out these forms and I’m sure we can find something for you!” 

I hope that sooner rather than later, people are going to start equating this kind of idiocy with the Keynesian economic policies that our highly educated “experts” have insisted on implementing over and over for the previous 3/4 of a century and it will finally die the slow agonizing death that it deserves.

Hope ‘n’ Change!! It’s happened before.

H/T to Maggies Farm for the video.

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3 responses to “In the long run, Keynes will be dead…finally.

  1. Your analogy doesn’t make any sense; that’s windows, we’re not talking about windows here…… Heh heh

    What are we talking about?

  2. Soviet of Washington

    Not Joe America’s great thoughts, that’s for sure.

    Try this as background reading.

  3. Mr Soviet,

    Thanks for the primer on Bastiat. If you were teaching a class on ancient economic history it might be relevant, or interesting – but it’s not. I prefer to live in the present, not in some philosophic fantasy world, waxing on about how great it was “back in the day” before Liberals took over the world. The good old days, weren’t so great, it turns out.

    I (and most rational people) have no interest in returning to a time when a few Lords and Kings (and Bushes) controlled 99% of the wealth – and the rest of humanity was left to grovel and pile mud up in a field (that they have no chance of ever owning) while the land owner complains about “those ungrateful and undeserving peasants” wanting more rights and privileges. The nerve….. Ronald Reagan is dead; too bad his hair-brained trickle down economic theories still resonate with some hair-brained people in this great country. With all due respect, of course.

    I have a small business, I employ hard working people, I pay taxes for myself and my share of the taxes due from my employees. I pay for their health care. And I make a profit. How do I do that you ask? I charge my customers the true cost of the service I provide – and they pay it. Because they see it as a valued service – and I do it better than my competitors. Plain and simple.

    Government doesn’t work like that: Unfortunately “Your Government” is stuck with the crazy business model of trying to provide the basic services that we all have come to expect and depend on, ie: fire and rescue, paving the roads, building ports and airports, etc, etc. But they also are responsible for some of the more “controversial” programs – like the building department: “I should be allowed to build anything I want, it’s my property after all” (unless it falls down and kills people – then everyone complains about the how the government employees are inept and aren’t doing their job) Or welfare: Personally I have never taken a dime of welfare or unemployment insurance money in my life, but I don’t for a minute claim that it is unnecessary or unneeded in this day and age. I’m white and reasonably educated; how would I know the disadvantages or discrimination someone else grew up with? I want everyone to have at least the same chance I had growing up in suburban, affluent, privileged, America. And, I’m more than willing to give anyone that will work for it, and earn it, the chance to rise up and be a productive citizen – regardless of their economic background, or whether their parents can afford to send them to university or not. In my humble opinion, the last thing we need, as a country, is more ignorant wealthy people sending their ignorant entitled kids off to State-funded universities to be taught how “special” they are – by virtue of their parents being able to pay their tuition. Let achievement be the only determining factor for admission……. Or, the defense of our country: Some people who comment on this blog seem quite enamored with the idea of us being an occupying force in the middle east – and spending 1/3 of our national budget on military spending. Well, I don’t. War is war. It’s killing innocent men, women and children. It’s not some chest-beating proof of how tough and right we are. It’s just proves how willing we are to kill other people in order to make them come around to “our way of thinking”. Then they just want to kill us even more the minute our back is turned. Killing innocent villagers doesn’t solve anything.

    My real point is: Government is different from business. Government isn’t out to make a profit; they do it at a loss – by definition. They, YOUR government, is trying to provide basic services – and is busy making hard decisions; all the while trying to balance the many different and opposing interests and lobbyists that are trying to pull it (your government) in a million different directions. It’s not simple, and it’s not black and white – like bloggers and pundits like to make it out. It’s super easy to sit at your comfy desk, in your comfy suburban house and criticise how “they” are doing things in Washington…. Or, you can do something to make it better.

    This is your country: I invite you to work to take it back if you think it’s off track. If you don’t like how YOUR Government is doing things, get involved, get elected to office. Do something. But please, quit belly-aching about how things are so wrong in this country – and maybe get off your arse and try to affect the future – the one we will be leaving to our children.

    But, as for all these people writing these bloggs about how America has gone to hell – they’re just pissing in the wind as far as I can tell. They ain’t doing shite to make anything better.

    Or, you can go on reading Bastait.

    Just a thought….

    Joe

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