What’s Wrong with “Neoliberal Economics”?

As a member of the “supply side” branch of modern classical economics, I might be labeled a “neoliberal economist” by some. But, there are important points at which common “neoliberal” economics fails badly, and which give rise to much-deserved criticism.

 
It is mostly Keynesianism

“Keynesianism,” in a broad sense, is a doctrine of macroeconomic manipulation, via two main channels: monetary distortion through changes in the value and quantity of currency, typically combined with manipulation of interest rates; and, government spending as a means of “stimulus.” This has been the overwhelming focus of economists since 1930 and continues today, among those economists without more overtly Marxist tendencies.

This has been true even of the supposedly arch-neoliberals such as Milton Friedman, who steadfastly advocated a system of macroeconomic manipulation via monetary distortion and floating currencies — “monetarism.” It was Friedman who said “we’re all Keynesians now,” including himself in that categorization. Conservatives are often hesitant to back the big-spending “stimulus” plans favored by the Keynesian left, but they usually end up voting for them in the end anyway. Then, appalled by the big deficits that result, they often follow up with tax increases.

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Πηγή: aier.org