In 1936, John Maynard Keynes' book appeared: The General Theory of Employment, Interest, and Money. It changed the world. It justified in the name of economic theory what governments had been doing since 1932: running deficits and creating fiat money. Keynes' ideas took over. Today, they are dominant. The 30-year break, 1978-2008 -- Chicago School, rational expectations, efficient market theory -- is over. Academic economists, like Dorothy in Kansas, ran for the Keynesian storm cellar. Unlike Dorothy, they made it. No trip to Oz for them!
In chapter 12, he contrasts enterprise with speculation. This is conceptually incorrect. Both rely on accurate forecasting. Both rely on transferring assets to a specific market position. He made speculators sound like gamblers. They aren't. The emotions may be the same, but the economics are different.
Comment: Great article showing some of the many ways Keynes was ignorant of basic economic theory YET many of our State sponsored academics parrot those nutty theories and even base policy on them! Keynesianism is creed of the economic priest class - it's the economic "theory" that most justifies the Corporate State.
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