Keynesian Economists are Narcissists who don’t know the First Thing about Economics

Posted by PITHOCRATES - March 2nd, 2014

Week in Review

There was a sketch on the Benny Hill Show that reminds me of Keynesian economists.  Benny was singing a song and they were showing the unrequited love around him.  They showed one woman who loved a man.  But that man loved another woman.  Who loved Benny.  And who did Benny love?  The camera remained on Benny.  Because that’s who he loved.

Keynesian economists are a lot like that.  They like to sound erudite.  They like to write things with impressive economic jargon in it.  The layman can’t understand a thing they say or write.  But that’s okay.  As they are writing to impress their peers.  People who are as narcissistic as they are.  And they tell each other how brilliant they are with all of their demand-side pontificating.  Pinching each other’s cheeks and saying, “Who’s a good economist?  You are.  You’re a good economist.  Yes you are.”  Even though they are always wrong.  Reminding me of another television show.  Hogan’s Heroes.  Where Colonel Hogan and Colonel Klink were disarming a bomb in the compound.  They’re down to two wires.  One disarms the bomb.  The other detonates it.  Colonel Hogan asks Colonel Klink which wire to cut.  He picks one.  And just as he’s about to cut it Colonel Hogan changes his mind and cuts the other wire.  Disarming the bomb.  Colonel Klink asks him if he knew which wire to cut why did he ask him.  And he replied that he wasn’t sure but he knew for sure that Colonel Klink would pick the wrong wire.

This is just like a Keynesian economist.  Ask them what to do to help the economy and you can be sure they’ll pick the wrong thing to do.  Because they love their demand-side economics with all their charts and graphs and equations.  For it feeds into their superiority complex.  As they can baffle people with their bull s***.  Well, the truth is that the economic data doesn’t support demand-side economics.  For all of the stimulus spending Keynesians have encouraged governments to do have never pulled an economy out of a recession.  It has only extended a recession.  And made it more painful.  For if you want to help the economy you have to work on the supply side.  Make it easier for people to be creative and bring things to market.  Things people will buy.  Even if they had no idea that they existed before seeing them in the market (see How Taco Bell’s Lead Innovator Created The Most Successful Menu Item Of All Time by Ashley Lutz posted 2/26/2014 on Business Insider).

The Doritos Locos Taco is one of the most successful fast food innovations of all time.

Taco Bell released the product in 2012 and sold more than a billion units in the first year. The fast food company had to hire an estimated 15,000 workers to keep up with demand…

The team went through more than 40 recipes, and Gomez told Business Insider he sometimes felt like the idea would never come to fruition.

“Execution was so difficult,” he said.

Gomez was eventually able to perfect the shell by using the same corn masa found in Doritos. He also discovered a process that would evenly distribute the seasoning on the shells. And the company found a way to contain the cheese dust in the production process.

Even after Gomez created the ultimate shell, he still had to design production facilities that would make millions of them.

But for Gomez, the years of effort was worth it.

“When we shared the idea with our consumers, they loved it,” Gomez said. “I was blown away with how immediately popular Doritos Locos Tacos became.”

The taco is the most popular menu item in the fast food chain’s 50-year history.

This wasn’t demand-driven.  As Keynesians believe everything is.  Get more money into the hands of consumers and they will demand things.  Thus increasing economic activity.  But not a single consumer was demanding the Doritos Locos Taco.  As there was no such thing to demand.  And giving them more money wasn’t going to bring it to market.  Only creative people with an idea and an indefatigable passion brought this to market.  Spending a lot of years and lots of money to bring to market something people weren’t demanding.  And might not even like.  But they did.  And it was a big success.  This is how you create economic activity.  On the supply side.  Cut tax rates and costly regulations.  Like Obamacare.  So other people are encouraged to be creative and use their indefatigable passion to bring other things to market.  Creating a whole lot more economic activity than just giving people a stimulus check and telling them to go out and create economic activity.  Because once that Keynesian stimulus is spent it cannot create any more economic activity.  Unlike all of the economic activity it takes to sell a billion or more Doritos Locos Tacos a year.


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The Government makes our Kids eat Dog Food in our Schools

Posted by PITHOCRATES - March 10th, 2012

Week in Review

The Obama administration has declared war on unhealthy foods.  Because we’re too fat.  And are in general poor health.  Because our mothers aren’t packing healthy enough lunches for their kids.  And McDonald’s and Taco Bell are killing us with unhealthy ground beef (see Seven Million Pounds of “Pink Slime” Beef Destined for National School Lunch Program by Sarah B. Weir posted 3/8/2012 on Shine from Yahoo).

McDonald’s and Taco Bell have banned it, but now the United States Department of Agriculture (USDA) is buying 7 million pounds of beef containing ammonium hydroxide-treated ground connective tissue and meat scraps and serving it up to America’s school kids…

According to, the term “pink slime” was coined by microbiologist Gerald Zirnstein, formerly of the USDA Food Safety Inspection Service. He first saw it being mixed into burger meat when he was touring a Beef Products Inc (BPI) facility in 2002 after an outbreak of salmonella. “Scientists in D.C. were pressured to approve this stuff with minimal safety approval,” Zirnstein told The Daily.

“Pink slime,” which is officially called “Lean Beef Trimmings,” is banned for human consumption in the United Kingdom. It is commonly used in dog and chicken food…

Another issue is the ammonium hydroxide, a chemical that is used to kill pathogens such as E. coli. The FDA considers it safe for human consumption but a 2009 expose by the New York Times questioned its safety and efficacy.

Well if that ain’t the pot calling the kettle black.  It turns out that McDonald’s and Taco Bell hold themselves to a higher standard than our government.  For our government will feed dog food to our children in school.  McDonald’s and Taco Bell won’t.  Even though the government will.  But they heard public opinion.  And they’re going to give the public what they want.  Unlike our government.  Who takes a high moralizing tone when it comes to healthy eating.  But then tells our kids ‘dog food is good enough for you’.  At least, when they’re paying for it.

This is an important lesson here.  The private sector wants to please us and gives us a higher quality food.  The government wants to change us and make us take what they give us.  A lower quality food.  And their snarky criticism about our poor eating habits.  Now just imagine the level of quality we’ll get under Obamacare.


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