New Book for Readers Worried About the Economy

Mt. Jackson, VA - In responding to the financial crash of 2008, both the Bush Administration and the Obama Administration have relied on prescriptions developed by John Maynard Keynes, the most important economist since Marx. But should we be relying on Keynes? What did Keynes actually say? Did he make his case? Hunter Lewis concludes that he did not. If Keynes was wrong then so are the economic policies of virtually all world governments today.

Lewis challenges many of Keynes's most established principles, arguing that:

Just what the world needs, and just in time. Keynes is demolished and his quack system refuted. But this wonderful book does more. It restores clear thinking and common sense to their rightful places in the economic-policy debate. Three cheers for Hunter Lewis!

highly provocative and highly pleasurable

worth reading aloud on a family vacation

*Creating new money to reduce interest rates ultimately backfires as we saw with inflation in the 1970s.
*Artificially reducing interest rates also leads to bubbles and busts, as in the 1990s and 2000s.
*If anyone benefits from inflation, it is rich, not poor people.
*Recessions cannot be abolished--they are sometimes needed to clear away the mistakes of the past so that healthy growth can follow.

"Just what the world needs, and just in time. Keynes is demolished and his quack system refuted. But this wonderful book does more. It restores clear thinking and common sense to their rightful places in the economic-policy debate. Three cheers for Hunter Lewis!"
--James Grant (Editor of Grant's Interest Rate Observer)

HUNTER LEWIS, co-founder of global investment firm Cambridge Associates, has written six books on economics and related subjects. His highly acclaimed book Are the Rich Necessary? Great Economic Arguments and How They Reflect Our Personal Values was called "highly provocative and highly pleasurable" by The New York Times, "great reading" by Publishers Weekly, and "worth reading aloud on a family vacation" by Barrons.

Summary

John Maynard Keynes died in 1946, but his thinking continues to dominate world economic policy. Bushonomics, Obamanomics, and the policies of the U.S. Federal Reserve have all ultimately been derived from Keynes's book, The General Theory of Employment, Interest, and Money, usually referred to as Keynes's General Theory or The General Theory.

What does Keynesian economics tell us about the Crash of 2008? First that crashes are an inevitable part of Capitalism-- they reflect what Keynes called the "animal spirits" of private markets. Second that the Crash creates a downward spiral that feeds on itself. If Keynesian remedies are not promptly applied, there may be no economic recovery. These remedies, the essence of Keynesianism, include the U.S. Federal Reserve printing money and lowering interest rates, bailouts, and economic stimulus through deficit spending.

Where Keynes Went Wrong demystifies Keynesian economics. It reveals what John Maynard Keynes really said. And it offers a startling and persuasive argument that Keynesianism is leading us down a parth, not to genuine economic recovery, but to inflation, bubbles, and crashes.